XING

[aero]

$8.25 first target. They are also distributing Palm's line in China. The cap seems minute for the prospects of the Co. Why do you think this hasn't really taken off. Is it because it is a China stock?

[Michael]

Hi Aero,

I think there is two reasons why XING is so cheap and they are unfortunately connected.

• Lack of trust in the management
• Weak financial reporting

The lack of trust in management has nothing to do with the performance of the company. There is a lot of respect about the results the company is generating. Both from investors and partners like Microsoft and Palm. It is rather the small favors Mr. Wu like to give to himself and his friends.

In January and February the company sold 3 million shares in two private placements for $6.5. They call it strategic investors but I would be surprised if it not somebody close to Mr. Wu.

Here is where I think the market is wrong. We are really talking about small favours compared to the dilution from the share issued and the price the investors paid. I rather see these private transactions as a sign that the stock price will increase. After all you don't give your friend a gift, which he afterwards lose money on.

Still the market allow all of us to buy shares at the same "friendly" price. Thank you very much. I hope I was not the only one who took advantage of that.

After the transaction was completed Mr. Wu has been all over the Chinese media to tell about the IPO, new products, new joint ventures etc. You can read all about it here (in Chinese  ):


http://tech.wg365.com.cn/2005/2005-12-1/wg3652005121163704.shtml

Three major points in this article:

1. CECT's 2005 net income will be more than US$25 millions, in line the guidance in English news releases.

2. CECT IPO is going into the final preparational stage. Almost ready.

3. Xing has made an joint-venture with a leading GSM manufacturer in Korea to build a company producing mobile chip sets (Xing holds 67% ownership). In other words, in addition to manufacturing phones, Xing is going directly to manufacturing core components of cell phones. They are aiming to sell the chips to cell phone manufacturers all over the world. The new company is expected to reach a revenue run rate of US$125 millions by the end of 2006.

And here are the video's:

1. Interview with Wu by Hong Kong Television:
http://video.google.com/videoplay?docid=8680013310319085848&q=xing
Wu talked about his road in entrepreneurship, how he made Xing successful, his philosophy in treating employees well and being a responsible manager, and his sincere faith in Confucius and Christian.

2. Wu Ru Lin and Wu Zhi Yang on the TV program ¡§Dialogue¡¨:
http://video.google.com/videoplay?docid=7109361355773764148&q=xing
Wu talked about the mistakes he had learned throw the years and his approach of integrating professional executives with high foreign degrees and expertise with his three sons and old employees in Xing. He also talks about his goal in making Qiao Xing a famous international company lasting more than 100 years and the issue of handing over to the next generation.

3. Special TV program ¡V Qiao Xing the famous Chinese brand:
http://video.google.com/videoplay?docid=-9154733205911215386&q=xing

4. Special TV program ¡V Qiao Xing 10-year Anniversary (in 2003):
http://video.google.com/videoplay?docid=-6285603936947181883&q=xing

5. CECT T2 cell phone TV commercial:
http://video.google.com/videoplay?docid=-1285360958522006775&q=xing

6. COSUN indoor cordless phone TV commercial:
http://video.google.com/videoplay?docid=7976487501714373892&q=xing

7. Qiao Xing¡¦s special entertainment TV program:
http://video.google.com/videoplay?docid=344597116750149011&q=xing

Most professional investors don't like to interpret management's different actions. They prefer good quality quarterly financial reporting. That gives a great opportunity for the rest of us to buy good companies cheap.

Mike

[yankee1]

THIS STOCK IS READY TO EXPLODE WITH GROWTH !!!

GLAD TO BE IN

))

[vic666]

ok now...here we go.

1.) XING gapped up on Tuesday after spectacular earnings were released - income of $1.44/share 2005 vs. $0.17/share in 2004

http://biz.yahoo.com/ap/060620/earns_qiao_xing.html?.v=1

2.) the stock gapped from monday's close of $9.34 to $11.67 on tuesday morning...going as high as $12.15....high on monday was $9.59

3.) the stock however pulled back wednesday and filled the gap at around $9.66 (low of day wednesday)

4.) today, it went back up on higher volume than yesterday's down day, and close near high of day.

here's a chart.

first resistance is the high on tuesday when earnings were released - $12.15

after that, it's probably gonna run higher...why?

because the P/E = 6.7 (after earnings were released). previously, it was somewhere around 65 !!!

anyway...chart looks good, fundamentals are awesome...great growth story from china...now, if only the general market could assist a little bit. 

[chinaman711]

Chinese company which had news monday. Looking for 30% sales growth in 2006 and 35% income growth 2006 thru 2010. Traded 4.6 mil shares monday and the market closed at 1pm. Could have another good day as it was mentioned on cnbc. Good luck

[la-onda]

1) this is not a penny stock !!
2) use the search functionality, there are already XING postings existing:
http://www.3stocksonfire.org/trading/index.php?topic=3847.135


cheers
O.

[mitch123]

any ideas on these two stocks?

[Se7en]

There is already another thread about XING > http://www.3stocksonfire.org/trading/index.php?topic=1241.0

So please use the search before starting new threads!

[setravis]

Out of time for tonight, will leave you the chart

[setravis]

Here is your pick on this stock la-onda,
and the other threads found on the Stock Picking Board and
the Penny Stock Picking Board, where a thread was also found.


"XING" Threads have been Merged.
Please use the search before starting new threads on a Stock Pick.
Chances are a thread already exist.
So why not post whatever you have to comment about on that pick to that thread.
"Simplicity" My fellow traders.                                                 
All history on a stock pick in 1 thread is awesome.                                                  
Just trying to get threads together,so we don't have a numerous amount floating around on the same stock.                                           
Thank You....and good luck with all your trades....make some $$$                 

Forgot to leave you Friday's closing chart while I was in this thread.......Here it is !

[Ramsburg]

A new video analysis about XING by David Randolph:

(Rating= 4 out of 10)

A video Analysis from 3StocksOnFire.org

[pinoleropuro]

not so good lately is it?

[David Randolph]

XING on May, 21st:

«Someone, I believe it was raspi, asked about XING. Over the following link is the reason why I sold it at $19.1 with a 27% profit: Reason for selling XING in 02-22-2007.

XING's market cap on a fully diluted basis is 36.63 million shares issued and outstanding times $13.55 = $496 M.

But the thing got worse with the QXM IPO, because that is nothing but further dilution, since QXM is currently a $563 M market cap company according to Market Watch.

Remember when I said that XING would definitely be worth $1 B in the future? Ok, here you have it, XING and QXM are the same business as before, and their combined market value is $1.06 B. The stock price went down, but the combined market cap went up.

Perhaps I'm seeing something wrong, but the QXM IPO represented further dilution to me, and the Dutton EPS estimate doesn't seem reasonable at all after the recent developments.

I know several of you own XING, not just own, many people love this stock, so I'm sorry for being bearish on it. If XING wanted to get serious it should start filing forms 10 with the SEC, but management doesn't want to do that, because then they would have to disclose all XING's risks and potential dilution.

The chart also turned decisively bearish, with the stock breaking down below the 200 days SMA. I hope I'm wrong, good luck »

[ygtrdr]

Ah, good old XING. This story on this one was so promising.

[David Randolph]

Ah, good old XING. This story on this one was so promising.

Yep, but it was a "low P/E, high growth" type of story which seems so logic but unfortunately fails so many times. In XING's case the explanation for the failure was relatively obvious, dilution was the cause, but on other stocks it's harder to explain. Maybe they're just cheap

I was reading on Citron's website the importance he puts on a cash flow analysis, on the general notion that "cash doesn't lie". I'll also increase the importance I give to the cash flow statement in my analysis as I look for the answer to the "why" question.