KongZhong (NASDAQ: KONG), a Chinese mobile telecom player, is a recent featured buy from Leo Fasciocco, a technician focused on breakout situations in his The Ticker Tape Digest.

"The firm said it is one of the largest mobile game publisher/developers in China. It sells its products through the Chinese telecom carriers' networks. 

"The company generally receives 60% to 85% of the revenue for services delivered and pays the remainder to these operators for transmission and service fees. The firm relies on these carriers to collect money from its customers.

"The stock came public back in 2004. The shares made their peak around 15, before pulling lower due to the severe bear market. This year the stock has rallied strongly. Indeed, it has been a star performer, rising 180% the past 12 months versus a 25% drop in the S&p 500 index.

"After surging from 4 earlier this year to 10, the stock has rested and formed a flat base. The base was well formed showing tightness in price and a contraction in volume. Its move above $10.23 on four times its normal daily volume can be viewed as an ideal breakout.

"The stock's accumulation - distribution line is in a strong up trend and has broken out to the upside today. That is good confirmation that the breakout comes with good buying.

"Revenue growth is running at 38%. The company is making acquisition to expand its operations. The firm said it is one of the largest mobile game publisher/developers in China.

"KONG is a small cap Chinese stock that is moving up sharply. We are targeting KONG for a run to 14.50 within the next few months, or sooner. A protective stop can be placed near 9.80 and should be honored.. We rate KONG a speculative intermediate-term play."