XING

[jorgegr]

Good PR Aussie, let's hope now it will start running
More volume would surely help to get it warmer

jorgegr

[Michael]

Today is not time to celebrate but at least we can be pleased with the news from XING: http://biz.yahoo.com/prnews/060605/cnm024.html?.v=2

XING today announced that a new model of mobile phone named ''A1000'' created and produced by its major subsidiary, CEC Telecom Co., Ltd (CECT) had met with enthusiastic reception in the China market. Up to date, USD 62 Million worth of orders of this model have been received from CECT's distributors.

A1000 is as said previously really a revolutionizing phone so I am not surprised about the market reception. What can surprise me though is that XING is still below 10.

When we bought Xing this time it was not "hot", In fact I am sure that there was a few technical oriented members that thought we had lost our mind but it is warming up and we will (hopefully) see the TA's in this thread soon. (if they don't prefer to post in the 3SOF thread  )

On a day like this I think it is time to introduce Marc Faber (aka Dr. Doom). I am well aware that he is very controversial. He hates Greenspan, he smokes marijuana and his macroeconomy analysis is a bit unconventional like the bar index or how to judge if a market is overvalued:

In Thailand 4 beers for me and 8 beers for the girls cost USD 40. In Wanchai - Hong Kong's red light district - a lady's drink alone costs already USD 40. Meaning Hong Kong is just too expensive.

But Marc Faber is probably the one economist who has most precisely predicted fundamental changes in the world economy in the last three decades.

In his latest report he is very bearish on US economy and bullish on – you guessed it: Oil, gold and Asia!

Now this is not for daytraders so don't go out and sell all you US stocks tomorrow but expect to see more gold, oil and Chinese/Indian stock picks in 3SOV in the month to come.

If you would like to read more from Marc Faber you can start here: http://www.gloomboomdoom.com/index.htm Enjoy - this is macro economy with flavor 

If you visit his site please remember that only a person with his track record can afford to be so controversial and still count some of the largest corporations in the worlds as his clients. He is truly one of a kind!

Back to XING. We will keep our trading plan. Earnings for 2005 and Q1 should be out within 2 weeks 

[Ramsburg]

Investors had a good reaction to this: (Thanks Aussie)
- Good Market Reception of 'A1000' - a New Model of Mobile Phone with 1000 Hours Standby Time That Is Launched by Qiao Xing Universal's Subsidiary CECT

And XING just moved across its $8.30 resistance level, showing a nice relative strength (against the general market) and a first volume increase... finally some action for XING
The $9.00 level can create a slight resistance to this move (or maybe not), but more important is the overall technical outlook, which is now getting much better (taking in consideration that when we bought XING a few weeks ago, we were catching a falling knife), $8.30 is now a support area, the ema-50 was also crossed again, and momentum is starting to be built on the chart.

Also, take a look to Michael's last update for XING on 3SOV portfolio:
http://www.3stocksonfire.org/trading/index.php?topic=5758.msg64509#msg64509

We can now upgrade our stop level once again, so the trading plan is:
Hold XING with a stop @ $7.85

Best regards,

[Ramsburg]

After yesterday's breakout, today XING re-tested the $8.30 level, throwing away yesterday's gains, but not affecting the short term technical pattern yet. We expect a positive reaction tomorrow.

Trading Plan:
Hold XING with a stop @ $7.85

Best regards,

[AussieTrader]

Some results filtering through, no more details than this at the moment as far as I can see:

Qiao Xing Sees 2005 Rev For Huizhou Xing Up 42%
Qiao Xing Puts 2005 Net For Huizhou Qiao At $9M >XING

[la-onda]

Qiao Xing Universal Telephone, Inc.'s Subsidiary Huizhou Qiao Xing Communication Industry, Limited Expected to Record Financial Results for 2005 Which Would be Significantly Better Than Those for 2004
Thursday June 8, 9:20 am ET

HUIZHOU, Guangdong, China, June 8 /Xinhua-PRNewswire/ --Qiao Xing Universal Telephone, Inc. (Nasdaq: XING - News) today announced that its 90%-owned operating subsidiary Huizhou Qiao Xing Communication Industry, Ltd. (HZQXCI), a fellow subsidiary of CEC Telecom Co., Ltd. (CECT), is expected to record financial results for 2005 which would be significantly better than those for 2004.

The Company estimates, on an un-audited management account basis, that sales revenue and net income of HZQXCI for 2005 would increase by about 42% and 386% to about USD103 million and USD 9 million respectively. Recently, the Company estimated sales revenue of USD250 million and net income of USD29 million for 2005 for CECT, another of XING's operating subsidiaries.

Mr. Wu Rui Lin, Director of HZQXCI and Chairman of Qiao Xing Universal, said, ''Completing its transformation from a sub-contractor of CECT to a manufacturer and distributor of the 'COSUN' brand mobile phone handsets, which it introduced in the second half of 2004, the Mobile Phone Division of HZQXCI achieved significant increase in sales in 2005 through the expansion its product lines and its distribution network. According to our estimate, HZQXCI realized about USD73 million in sales revenue and USD7 million in net income from its mobile phone business segment, representing growth rates of 44% and 619% respectively compared with 2004.

''In the indoor phone business segment in 2005, sales of value added telephone sets continued to increase. There were more big-volume sales to telecommunication operators compared with 2004. There was also increase in export sales. According to our estimate, compared with 2004, sales revenue and net income from the indoor phone business segment climbed 27% and 128% to reach about USD30 million and USD2 million respectively.

''We anticipate further rapid growth for HZQXCI's mobile phone and indoor phone business segments for 2006 and beyond.''

[la-onda]

BUYINS.NET: ....XING Have Been Removed From Naked Short List Today
Qiao Xing Universal Telephone, Inc. (NASDAQ: XING) engages in the manufacture and distribution of telecommunications products. Its product portfolio includes telecommunications terminals and related products, including fixed wireless phones and mobile phones; and consumer electronics, such as MP3 players, cash registers, and set-top-box products. The company also designs fixed line telephones and GSM mobile phones. Qiao Xing Universal distributes its products through independent regional distributors, and after-sales service centers, including wholesale agencies in China. As of December 31, 2004, the company distributed its products through 40 regional distributors to approximately 5,000 retail outlets in China. It has strategic partnership relationships with China Telecom, China Netcom, China Railcom, China Mobile, and China Unicom. The company was founded by Rui Lin Wu in 1992 and is based in Huizhou City, People's Republic of China. With 956,171 shares declared short as of May 2006, there is no longer a failure to deliver in shares of XING.

http://www.knobias.com/individual/public/news.htm?eid=3.1.947745e6e651d03a7f5779400db565dda099502a701349e40da73b436fc1fd50

[Michael]

Hmmm.... Let's try to run those numbers again. Total revenue from subsidiaries 353 millions US$ and Net profit of 38 million US$. We still don't know XING's final EPS after dilution, minorities and other subsidiaries.

The latest reported number for outstanding shares is 16.65 million. There has as expected for an extremely fast growing company as XING been some dilution but I would estimate EPS to be around 1 (EPS will most likely be higher but let's be conservative!). That gives you a PE of 8.2 for a company that is growing EPS a lot faster than my Porsche can drive on the dirt roads in Mozambique

Let's just for moment forget about the IPO of CECT. A PE of 8.2 is extremely cheap for a company that is adding market share every quarter in the world largest mobile phone market in one of the fastest growing economy's in the world. Till now this market has been sufficient to support XING's growth rates but there is an even more interesting market outside China and XING certainly has the products to penetrate the world market at prices that non of the established players can compete with.

As said before XING's investor relations are horrible. This is why you can still buy the stock at this level. They have promised to improve that in the future so I believe that with the release of 2005 earnings and Q1 2006 we will never see XING in the single digits again!

PS. Porsche in Mozambique! Forget about it I am driving 4x4 and XING is growing earnings 4 times faster the top speed of my Cruiser 

[Ramsburg]

Some results filtering through, no more details than this at the moment as far as I can see:

Qiao Xing Sees 2005 Rev For Huizhou Xing Up 42%
Qiao Xing Puts 2005 Net For Huizhou Qiao At $9M >XING

Thanks Aussie
Heres the links for the latest news:
• Huizhou Qiao Xing Releases Guidance

• Qiao Xing Universal Telephone, Inc.'s Subsidiary Huizhou Qiao Xing Communication Industry, Limited Expected to Record Financial Results for 2005 Which Would be Significantly Better Than Those for 2004

XING made a nice candle today, following the market to the upside, and having a good reaction at the support level.

Michael posted an update on the 3SOV position:

Hmmm.... Let's try to run those numbers again. Total revenue from subsidiaries 353 millions US$ and Net profit of 38 million US$. We still don't know XING's final EPS after dilution, minorities and other subsidiaries.

The latest reported number for outstanding shares is 16.65 million. There has as expected for an extremely fast growing company as XING been some dilution but I would estimate EPS to be around 1 (EPS will most likely be higher but let's be conservative!). That gives you a PE of 8.2 for a company that is growing EPS a lot faster than my Porsche can drive on the dirt roads in Mozambique

Let's just for moment forget about the IPO of CECT. A PE of 8.2 is extremely cheap for a company that is adding market share every quarter in the world largest mobile phone market in one of the fastest growing economy's in the world. Till now this market has been sufficient to support XING's growth rates but there is an even more interesting market outside China and XING certainly has the products to penetrate the world market at prices that non of the established players can compete with.

As said before XING's investor relations are horrible. This is why you can still buy the stock at this level. They have promised to improve that in the future so I believe that with the release of 2005 earnings and Q1 2006 we will never see XING in the single digits again!

PS. Porsche in Mozambique! Forget about it I am driving 4x4 and XING is growing earnings 4 times faster the top speed of my Cruiser 

Trading Plan:
Hold XING with a stop @ $7.85

Best regards,

[la-onda]

 CECT to Go Public in NASDAQ Before Q4 2006
Friday , June 09, 2006 08:43 ET

BEIJING, Jun 09, 2006 (SinoCast via COMTEX) -- CEC Telecom (CECT), a mobile phone subsidiary of Qiao Xing Universal Telephone, Inc, (NASDAQ: XING), finally nailed down its schedule for overseas stock listing. The company is set to go public in NASDAQ before the fourth quarter of 2006 to raise USD 150 million.

CECT will likely to be the first China-grown mobile phone manufacturer whose stock is listed on NASDAQ. At present, most Chinese homegrown cellphone makers choose to go publich in China mainland or Hong Kong.

Insiders at CECT disclose that the company has planned the overseas stock offering as early as from two years ago and now formally kicks off the preparation. At first, the company will select the lead underwriters for this stock offering, and it will contact with a number of US-based investment banks.

According to its plan, CECT will inject most of the capital raised from stock listing into 3G mobile phone development and manufacturing. The company has obtained USD 60 million via previous private offerings.

[Ramsburg]

XING managed to stay up last Friday, even selling considerably from the session highs...
The range $8.90/$9.20 can be considered as a short term resistance level, it was already a reaction zone during March/April, and it was the only level of reaction during the last big sell off, and that's why XING is having some trouble to break that level (and because of the market conditions as well). I believe XING is ready to trade its way up above $9.00 very soon.

Trading Plan:
Hold XING with a stop @ $7.85

Best regards,

[AussieTrader]

Sometimes Mr Market cares not if you are undervalued or overvalued. XING got hammered today and broke the 200MA closing below in fact. I stopped out of my position just below $8.
XING long term is still one I want to own, but not right now.

[Michael]

Sometimes Mr Market cares not if you are undervalued or overvalued. XING got hammered today and broke the 200MA closing below in fact. I stopped out of my position just below $8.
XING long term is still one I want to own, but not right now.

Different investors - different trading strategies  You certainly made a smart move selling at 8 - Congrats. I wouldn't stay out too long though if you like the fundamentals.

Todays sell off was a result of a general trend of rotating money out of riskier assets into cash and Bonds. I don't see any fundamental reasons for the sell off. On the contrary for everyday that pass we are closer to earnings.

The reallocation of funds hurt a lot of fundamentally very good stocks today and I am starting to pick up value stocks here. Some weeks ago I recommended to use any bounce in the market to reduce your exposure if you were overexposed in the market. Today I would recommend that you use any sell off in the market to add stocks you feel comfortable holding over the long run.

That XING is fundamentally attractive got yet another confirmation today. Valuengine upgraded the stock to its highest rating:

Jun 14, 2006 (financialwire.net via COMTEX) -- June 14, 2006 (FinancialWire) (Investrend Research Syndicate) ValuEngine, Inc. (http://www.valuengine.com) upgraded five companies, including Holly Corporation (NYSE: HOC), Piper Jaffray Companies (NYSE: PJC), Bancolombia S A (NYSE: CIB), and Qiao Xing Universal Telephone Inc (NASDAQ: XING), to a "5" rating, the service's highest.

http://www.knobias.com/individual/public/news.htm?eid=3.1.5f1d41850771d8129de9f8031e62bdb7a251c08b2795e76706e2a98b4b3330b2

From a fundamental point of view XING is a great stock. This will be reflected in the share price sooner or later so the short term trading strategy is based on your time horizon for your investment.

[Loffigus]

Looks like the floodgates have been opened... maybe this push will get past the $8.90 resistance.

[la-onda]

XING: Shares Spiking on EPS Guidance
Wednesday, June 14, 2006 10:51 ET

Qiao Xing Universal Telephone Inc (XING) shares, up 15%, are spiking on news that the company expects to report basic earnings per share before gains of more than $1 for 2005, up sharply from 17 cents in the year-ago period. With a $1 in EPS the shares would only be trading at a P/E of 8.4.