3SOF

XING is one of the most undervalued growth stocks in the entire Nasdaq market (in fact, it is the most undervalued I've ever studied, I think).

They make cellular phones and other telecommunication equipment in China, for the Chinese market, but can start selling across the world. XING could be one of the first Chinese global trademarks.

I'm sure they do great phones at a much cheaper price than Nokia, Erikson or Motorola. Check XING's website (it's a slow website, probably because it is hosted in China).

Their reporting practices were lousy (and they used to dilute shareholder's value), but that has been changing. The stock is responding to the fundamental change.

Dutton estimates 2007 EPS at $2.53 This means that if they're right, the forward earnings multiple is 6. And we're talking about expected EPS growth of 51%, from 2006 to 2007.

Nothing else to do but to buy and hold XING for the long term.

I'm long on XING and have done well these past months, and I think there is plenty more to come.

I'm not one for posting unsubstantiated information, but the below is a quote from a guy called Kevin Chen. He is pretty wel known on the Yahoo XING board and has his own investing forum also (I have in fact referenced him to 3SoF a long time back). He is long term long on XING because of the changing fundamentals and move to transparency, combined with lo low valuation, leading products and overall long term growth prospects (same as me I guess). He is Chinese and has Chinese based friends. Previous inputs he has given have proven correct. So I post his comments on that basis.

Quote Kevin Chen 19th Jan:
Just got the first hand data from my friends working in big electronic store chains in China. CECT's 4Q sales was absolutely astounding this time, and Cosun had a strong showing too.

How astounding? Just look at two hottest models: IP1000 and C1000 (the newest champion of battery life with 1,500 hour standby time). Almost every stores packed their warehouse with these two models before December becasue of consumers' super high interest on them from marketing surveys and early sales in November. Yet, all those units were depleted every week in most stores, forcing them to place re-orders to CECT every week. They are probably the hottest electronic gadgets on earth after PS3 and Wii in the past two months! (visit some electronic stores in China or ask someboby who did and you'll know I am not kidding you)

Fortunately, this time the company did prepared with enough material and production lines to boost output for the retailers. Scott, you know, it seems that our sales target of $175M is very likely going to be surpassed. From preliminary data, I am estimating that these two models probably have been sold as least 100,000 units each in 4Q. With an average sale price of about $300 from CECT (retail price $400+), the company got $70M or more from just these two models!

Xing and CECT each had more than 10 new models in stores in Winter. Although second to these two, other models were also very popular. The sales from those 20 or so new models alone probably have surpassed $170M, and we haven't count follow through sales from all earlier models yet, including Tre650, A1000, and A900.

Quote from: David Randolph on January 22, 2007, 04:11:31 AM
It also depends on your initial capital size. If you have just $5,000, what the hell, you can't diversify enough without incurring significant trading costs, so why not buy it all in just 1 or 2 stocks that you think have significant upside and not much risk? But if you have $50,000 to invest and put it all in XING, I would say you're taking too high and unnecessary risks.

I agree , David.

May be investment in XING will help me diversify in the future 

This is the link (from yahoo message board) showing institutional owership in XING. If it's true, it now approaches 20%.
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&timeframe=&intraday=&charttype=&splits=&earnings=&movingaverage=&lowerstudy=&comparison=&index=&symbol=xing&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=XING

"And institutions are responding, as buddjas1 says (where did you get that information about institutional ownership buddjas1? Thanks!)"

My broker is E*Trade.  E*Trade provides stock information through "Market Guide Inc.," which is updated weekly.

Thanks for the great post and information AussieTrader. Tell me, that guy, Kevin Chen, what's his nickname on Yahoo? I'll keep an eye on his posts going forward, thanks.

Quote from: rspisek on January 23, 2007, 02:43:53 PM
This is the link (from yahoo message board) showing institutional owership in XING. If it's true, it now approaches 20%.
http://www.nasdaq.com/asp/holdings.asp?mode=&kind=&timeframe=&intraday=&charttype=&splits=&earnings=&movingaverage=&lowerstudy=&comparison=&index=&symbol=xing&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&FormType=Institutional&mkttype=&pathname=&page=holdings&selected=XING

Great link rspisek, thanks. It looks like Navellier and Bear Sterns have initiated meaningful positions in XING on the 3rd and 4th quarters.

The stock declined a bit yesterday on profit taking, since it was up about 20% in just 5 trading days. I expect the uptrend to resume shortly, as fundamentals are as attractive as they can be.

The advantage of holding a fundamentally strong stock like XING is that when it goes down on profit taking, it usually bounces back quickly.

XING makes telecommunications equipment, phones and cellular phones for a 1.3 billion people market place. In my view, it can grow a lot (as it has been doing).

The undervaluation, perhaps warranted in the past due to poor financial reporting, seems a nonsense now. XING is trading at 6 times estimated 2007 EPS. If this multiple rises to a more reasonable 18 times earnings (still cheap, considering EPS growth), the stock would rise to $46/share.

I don't see why not.

I'll keep holding XING, both a value and a growth play, that is, the best of both worlds in one single stock.

People are very excited about XING on Yahoo. Perhaps in the past I didn't consider that to be a positive sign. But now I see those thoughts  had no ground basis, because capital moves from weak stocks to strong ones, that is, the more people that feel positive about a stock, the more they will spread the word and the more people will come to that stock and that is what causes many speculative waves and ballooning stock prices.

A meteoric rise can indeed happen on XING, but for the fundamentally right reasons. The fact that the stock is this undervalued is bringing such a crowd to the stock that is capable of initiating a speculative wave that will take the stock from undervalued to overvalued, can you imagine that?

Imagine XING goes from 6 times 2007 earnings to 30 times 2007 earnings (then it would be overvalued). The share price would rise to $77.5.

While we're allowed to dream about this very bullish outlook, it's also nice to know that underneath the current share price are real products, revenues and earnings, that limit the downside.

That's why I consider XING to be the best of both worlds: value won't let it go down. Historical growth patterns have the potential to make it rise a lot.

There's only one thing to do when considering XING: Buy and HOLD.

I'm buying and holding XING and I have a 5% profit to show. Not bad, but I expect much more as time goes by.

I've talked to my brother, whom lived in Macau for about a year, and he didn't know the Cosun mobile phones. Probably that's because China is so big that they're not selling in Macau, a former Portuguese colony.

I'm checking their website and it looks they don't have just phones and mobile phones, but also something similar to an iPod, take a look: http://www.qiaoxing.com/

My brother said the Chinese don't care much about the trademarks, they care mostly about the gadget's technical capabilities (games, accessories, etc).

I'll keep holding XING with strong hands (not hard to do, since it keeps moving up).

Another day, another 5% gain for XING. The 2006 high is in reach now, at $17.17. I expect XING to approach and surpass that more or less technically significant level with ease.

Just sit tight and let the profits run.

Quote from: Melf Elf on January 12, 2007, 10:06:45 AM
Bought XING at 12.67.  Stop: 12.48.  Risk: a loss of 1½%.

Sold my remaining 75% XING at 17.40.   Gain: 37.3%.

Gain on the trade: 29.4%.

Quote from: Melf Elf on January 17, 2007, 07:38:37 AM
Here's what I've got for targets on the DOUBLE breakout:
1. 14.22 - Top of the Bull Flag.  MADE on January 16.

2. 14.89 - Measured Move off the Bull Flag.  MADE on January 18

3. 17.20 - Top of the Channel

4. 19.06 - Measured Move off the Channel breakout

17.20 MADE.

Quote from: Melf Elf on January 18, 2007, 03:51:17 AM
rspisek,

You're welcome.  Yes, I'm 75% long.  If all goes well with this DOUBLE breakout, I'd expect to see us near the top of the channel, at 17.20, by March 13; no later than April 19.

And, 17.20 MADE well ahead of schedule.

19.06 still is IN PLAY, but that's nice gain in a short time, so I decided to take the money.

Nice trade melf! Missed this one 

Quote from: nullzero on January 30, 2007, 01:41:27 PM
Nice trade melf! Missed this one 

Thanks, nullz.  That's okay.  We can't catch them all.

This morning's gap up to 16.90 and rally beyond the 17.20 target looked like it could be a short-term blowoff after a very nice, but very sharp, rally.

If XING finishes near here, that would put a Bearish Inverted Hangman on the chart (it would need downside confirmation), so it might consolidate a bit since the 17.20 target MADE.

Man you are amazing!! 2 pennies off the high!!  I sold some today in the 17.20s, but still keeping a bit in the bag.  XING has been a real xinger and a good one to us, so I have to thank you for the heads up on this trade.

I'd like to see it close above 17.20 if it could, though this might be a bit much to ask.  If it did though it could signal an attempt at that $19 target.

Cmon XING!!

Quote from: ScottishTrader on January 30, 2007, 02:07:34 PM
Man you are amazing!! 2 pennies off the high!!

Scotsman,

Thanks, but that was pure luck that I nailed the HOD that closely.

My plan was to sell another 25% with the 17.20 target got MADE, but when I saw it pumping so hard to the upside after this morning's gap I, I started thinking "Short-term Blowoff Top." 

I decided to hang about a minute when 17.20 MADE, and see if I could catch a little more (Greed Demon  ).  When it kept pumping higher, beyond the target, I decided to sell all of it at the market.

Pure luck that I got the 17.40 fill.

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I sold some today in the 17.20s, but still keeping a bit in the bag.

That's great.  Congratulattions!

Quote
XING has been a real xinger and a good one to us,

Boy, it sure has!

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so I have to thank you for the heads up on this trade.

My pleasure, and thanks for our interesting discussions on it.

Quote
I'd like to see it close above 17.20 if it could, though this might be a bit much to ask.  If it did though it could signal an attempt at that $19 target.

Cmon XING!!

You've got a chance of an upside breakout here in the 5-minute.  Good luck!