3SOF

Yet another new order for XING:

QuoteQiao Xing Universal's Subsidiary Signs Agreements with Four Sub-Branches of China Telecom to Supply CDMA Wireless Cityphone Sets

Monday August 29, 9:35 am ET

HUIZHOU, Guangdong, China, Aug. 29 /Xinhua-PRNewswire/ -- Qiao Xing Universal Telephone, Inc. (Nasdaq: XING - News) announced today that its subsidiary Huizhou Qiao Xing Communication Industry Limited (''HZQXCI'') recently signed sale and purchase agreements with four sub-branches of China Telecom (NYSE: CHA - News) in Yunnan Province. The agreements provide for the supply by HZQXCI of up to 30,000 units of CDMA Wireless Cityphone sets to the four local communications operators. The first shipments are expected in the middle of September 2005.

Link: http://biz.yahoo.com/prnews/050829/cnm011.html?.v=2

The fundamentals of this stock seems to get better for every week that pass. This is however still not reflected in the POS:

Technicals :
Ascending triangle breakout
Volume spike
Candelstick : White marabuzu

News :
HUIZHOU, Guangdong, China, Oct 31, 2005 /Xinhua-PRNewswire via COMTEX/ -- Qiao Xing Universal Telephone, Inc. (XING) today announced that the new model of pocket PC mobile phone named 'P08', developed by XING's subsidiary CEC Telecom Co., Ltd. ("CECT"), had proudly made its appearance in the PT/Expo Wireless & Networks Comm China 2005 trade show, displayed in Microsoft's booth in the showcase for Smartphones which run on the Windows Mobile 5.0 Operating System.

Cf.

I need money! The Viropharma opportunity is just too good to ignore so something have to go 

XING has done phenomenal the last week an even though it still has some way to go I will have to sell it today.

XING is quite volatile so I hope I can get in again at a later stage.

Enjoy the chart I hope I was not alone on the ride 

very nice michael.  applause.
did u see GIGM is rising again. lol.

-rocket8

XING: Short Interest UP 26.3% to 472.1K in Nov 2005

Friday , November 25, 2005 13:20 ET

According to new short interest data from NASDAQ, short interest for Qiao Xing Universal Telephone, Inc. (NasdaqNM: XING) INCREASED 26.3% to 472,124 shares for the month ended mid-November, 2005.

SYMBOL           OCTOBER        NOVEMBER          CHANGE       %CHANGE  DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
XING             373,895         472,124         +98,229       +26.27%           2
Based on XING's 20-day average daily share volume of 384,661, it would require approximately 2 day(s) of buying to cover this short interest.

I bought XING back today. For the first time I would actually like to hold it over the earnings.

XiING has a phenomenal growth and seems poised to be a major player in the Chinese handset marked.

Dilution as we saw today is to be expected but with the top and bottom line growth the reaction seems to be out of proportion. After all 2 million shares are quite insignificant and so is the discount to the market price.

Mike

Hey Michael,

I put XING on my watch list b/c of your recommendation.  Can you elaborate on why you like XING so much?

Isn't the cell phone market in China crowded.  Plus XING's profit margin, ROE, etc don't seem all that impressive.

XING seems to pale compared to other companies such as CNTF.

Thanks.

Logo

Hi Logocovet,

You are right that based on historical ratio's XING isn't the best pick out there but XING is a growth story.

Try to look at the operating profit over the last 4 years:

2002  - 6.3 million
2003    0.4 million
2004    8.2 million
2005  28.2 million

The 2005 figure is from the company's guidance on December 14 and I am pretty sure they will exceed this.

You are right that the Chinese cell phone market is crowded. Hardly surprising as it is the worlds largest and fastest growing (in unit terms) but both XING's brands has added marketshare and are well position to continue this trend in the coming years with the agreements with PALM and Microsoft.

In addition they seem to have success on the export markets with operator branded phones which are a fast growing market.

I think that XING will become a major player in the Telecom market over time.

Look at Huwai; they started producing Ericsson equipment and is now a major player internationally. Could this happen for XING?

I am not sure but I am willing to bet on it as the stock is very cheap based on the projected results for 2005

Mike

It is not that I want to be difficult. In fact it is really nice to see that the market suddenly discovers that even though some so-called strategic investors can buy the stock for $6.5 doesn't mean that the stock is not worth a lot more.

But why in h... do they need to start a rally on a day when the market is so depressed

Come on guys - relax there are another day tomorrow. This stock will run up to the earnings release and most likely jump after but to start a run today is really an uphill battle!

I picked some up at 7.42 this AM. Lets see what happens.

XING's major subsidiary CECT published their numbers on Friday.

So the reasons for the run on Thursday was that somebody knew about the PR issued on Friday. Not very ethical but welcome to the modern world of investing!



The stock ended slightly lower at the end of the day even though CECT's net profit were 21% higher than the company's forecast in November. CECT had a USD 29 million net profit. That is an 80% increase over 2004.

XING owns 72% of CECT so USD 29 million translates into USD 21 million for XING. XING has other subsidiaries which normally also contributes to the earnings but they also have interest cost etc. which have the opposite effect.

Dutton and Associates made the following forecast on revenue and EPS before the release of CECT's result:



With the release of CECT's numbers these estimates seems conservative but even with Dutton's EPS forecast XING is trading at a PE of 6.9 for 2005 and 4.8 for 2006. With earnings growth of 80% this really seems like a no brainer!

Dutton has a target of 10.5 (they raised in October). I could see it much higher but we will se when they release the final figures for 2005.

Mike

Some more great news. CECT has entered the top 10 of most popular handsets in China. They jumped in on the 9th spot ahead of Brands like LG, Siemens and Sony Ericsson!

http://translate.google.com/translate?u=http%3A%2F%2Fzdc.zol.com.cn%2F25%2F254797.html&langpair=zh-CN%7Cen&hl=en&ie=UTF-8&oe=UTF-8&prev=%2Flanguage_tools

And XING's market cap? $115 million

Mike

Hmmmm. I am kind of talking to myself in this thread which is OK except that I can't applaud myself

Anyhow I am probably dead wrong with XING but I still love the stock. As per my previous mail CECT is gaining popularity in China and the Chinese market is growing very fast:

QuoteHONG KONG, Feb 20 (Reuters) - China's two dominant mobile carriers posted strong subscriber growth in January, banking on a traditional seasonal burst of activity around the Lunar New Year.

The larger of the pair, China Mobile (Hong Kong) Ltd. said on Monday it added a record 4.07 million users for the month, bringing its total subscriber base to 250.72 million.

Its main rival, China Unicom Ltd. on Sunday reported it added 1.3 million subscribers in January, its biggest monthly increase since May 2005. The number of Unicom users totalled 129.1 million at the end of January.

Now that is 5.37 million subscribers in ONE month. Most European operators don't have 5 million subscribers after 15 years operation! and this is only new subscribers the replacement market is growing even faster.

CECT had 81% increase in Income in 2005. 2006 seems even more promising.

As I said I am most likely dead wrong but i am willing to take a chance on XING. In fact I think I will add to my stake if I get a chance.

Mike

Hmmm we had one of these surprising gaps on XING today.

As with many Chinese stocks we now have to wait to see why. Most likely earnings has leaked but we will see.

Anyhow I am in XING for the long run. The growth of the mobile industry in China is amazing. Mobile phones is number one status symbol and you buy one when you can afford it. With the growth of GDP more an more people can afford a phone.

With CECT's increased popularity XING's revenue is growing even faster. So fast that the small friendly favors that Mr. Wu gives from time to time really can't justify the evaluation of XING.

Mike

So we have been upgraded:

QuoteFriday , March 03, 2006 00:42 ET

(financialwire.net via COMTEX) -- March 3, 2006 (FinancialWire) (Investrend Research Syndicate) ValuEngine, Inc. (http://www.valuengine.com) upgraded five companies, including Imperial Oil Ltd (AMEX: IMO), Ryder System Inc (NYSE: R), SPX Corporation (NYSE: SPW), and Qiao Xing Universal Telephone Inc (NASDAQ: XING), to a "5" rating, the service's highest.

The ValuEngine Rating is an overall assessment of a stock's attractiveness. It combines the following five factors: ValuEngine's proprietary valuation, risk-return tradeoff, momentum, market capitalization and ValuEngine's proprietary forecasted one-month return.

I like the ValueEngine's proprietary Valuation. I am wondering if that has anything to do with the CECT IPO 

I worked on the numbers yesterday but didn't save the spreadsheet so here is a short version:

XING owns 72% of CECT. An IPO will probably be priced at a forward PE of around 15 but lets be conservative and say 10.

CECT earned $29 million last year and That was a 100% increase in profit. Let's assume profit only increases with 20% this year (highly unlikely)

So with forward earnings of 34.8 million CECT's market Cap at a PE of 10 would be $348 million. XING share of this is 250 million (72%).

XING's market cap is 125 million. Not only is that half of CECT's expected value but this also include the rest of XINGS business.

XING is the second largest distributor of fixed phones and cordless phones in China. They have a low-end brand of mobile phones in addition to CECT. They make a number of other products.

Well the value of XING has always been therefore everybody to see but with the CECT IPO the valuation becomes ridicolous IMHO.

Mike