XING

[Michael]

Now be honest

Does your phone have:

• 2 months stand-by battery?
• Can it play non-stop MP3 for 20 hours?
• Does it run Linux or pockets windows
• Does it have strongest multimedia functions available in the market?
• Do you have 18 months warranty?
• Does it have QVGA TFT LCD display
• Does it have 4M resolutions CCD digital camera with video recorder/playback, flash light, auto focus and digital zoom function?

If it has please post the name of the manufacture I might buy the stock!

[Michael]

So if you have answered no to the questions you might consider to buy a CECT handset. After all they are a lot cheaper than Motorola and Nokia, have better warranty terms and has a lot more functions!

I know this is not a site for promoting handsets but try to have a look at a couple of CECT's handsets and your impression of XING might just change a bit:

First A1000:



I don't think there is a better handset available in the world. Absolutely outstanding battery. Great camera (you can find a better camera but not at this price and not with the other specs). Nice design. Have the full windows suite.

And here is P06



How many handsets in the world runs Linux? Has 2M resolutions digital camera with video recorder/playback and 6X digital zoom function? And has:

Alarm clock, world clock, calendar, calculator, memo, PPT/Word/Excel/PDF viewer, Email, Chinese-English dictionary, handwriting recognition software, Email, Outlook sync, PC sync, photo album, photo editor and games?

XING is not a third world handset producer. It is among the leading handset producers in the world. I honestly believe they have better products than Nokia and even Motorola!

BTW a number of their handsets is designed by TBYH, which has been rocking lately 

[Michael]

As said this is not a site to promote handsets! So lets have a look at CECT's financials (which is a derivative of their superior handsets!):



CECT (which is 72% owned by XING) had a profit of 31.7 million USD before minorities last year. (XING's market cap is 138 million USD and CECT is not the only asset they have!)

China is by fare the world largest market for mobile handsets and CECT has steadily been gaining market share:



They are now ahead of well-known brands as LG, Philips, Panasonic, Alcatel, Siemens etc.

Will CECT be able to beat these companies when they seriously start to enter the world market? Well I believe so. The main problem is obviously to expand the production but with the imminent IPO and the fact that they are Chinese I am sure they will handle it 

Some of you might remember Japanese car manufactures 20 years ago when they started to expand internationally. Today they are ruling the market! Companies like XING is going to be a major force in the mobile industry in the years to come - and their suppliers like TBYH and CHID is going to grow with them!

[Michael]

I could go on all night but let me finish here with some food for thoughts. XINGs market cap is a said 133 million USD. Nokia's market cap is 89,120 million USD.

What was GM's  and Toyota's market cap 30 years ago and what are the market cap's today?

Yes XING has value today but this is only the start!

[usedcasting]

Michael, you must also not have a long weekend this weekend. There are not to many folks left around here today. Great review. Very exciting. Thanks

uc.

[la-onda]

fyi: 
XING: Short Interest DN 53.5% to 956.2K in May 2006
Wednesday, May 24, 2006 16:22 ET

According to new short interest data from NASDAQ, short interest for Qiao Xing Universal Telephone, Inc. (NasdaqNM: XING) DECREASED 53.5% to 956,171 shares for the month ended mid-May, 2006.

SYMBOL             APRIL             MAY          CHANGE       %CHANGE     DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
XING           2,057,036         956,171      -1,100,865       -53.52%           3

Based on XING's 20-day average daily share volume of 463,185, it would require approximately 3 day(s) of buying to cover this short interest.

&

Qiao Xing Universal Updates its Financial Disclosure Plan
Thursday , May 25, 2006 09:00 ET

HUIZHOU, Guangdong, China, May 25, 2006 /Xinhua-PRNewswire via COMTEX/ -- Qiao Xing Universal Telephone, Inc. (Nasdaq: XING) today updates its financial disclosure plan to the following:

    1.We aim to release 2005 earnings in the Form 20-F in the middle of June
       and certain key financial data for the first quarter of 2006 shortly
       afterwards.

    2.Starting from the first half of 2006, we will provide more
       comprehensive half-yearly financial reporting, which will consist of a
       consolidated balance sheet and a semi-annual consolidated income
       statement with information about earnings per share.

    3.The first and the third quarter, the Company will continue to
       release certain key financial data for the year to date as we have done
       since the first quarter of 2004.

Mr. Wu Rui Lin, Chairman of Qiao Xing Universal Telephone, Inc. said, ''We appreciate the need of investors for information about the Company, especially financial one, on which to base their investment decisions, and will continue our effort to improve on the transparency in our communication with the investor community.''

About Qiao Xing Universal Telephone, Inc.

Qiao Xing Universal Telephone, Inc. is one of China's largest manufacturers and distributors of telecommunications products. The Company has grown its net sales from approximately $46.4 million in 1997 to more than $244 million in 2004. The Company's product portfolio includes telecommunications terminals and related products, including fixed wireless phones, VoIP telephones, advanced mobile phones, PDAs and consumer electronic products, including MP3 players, cash registers and set-top-box products. This includes the world's first model of dual mode and dual call waiting GSM/CDMA smartphone, the 'CECT CoolPAD 728.' The Company has established co- operative relationships with leading telecom and software companies for their China strategy, including Microsoft and Palm, aiding success for its 'High End Mobile Phone Strategy'. XING currently distributes over 260 models of corded and cordless telephones and is one of China's largest distributors of indoor phones. The Company has built a strong distribution network comprised of more than 5,000 retail stores throughout China and has established partnerships with major retailers in Europe, North America and Latin America, including Bellsouth and Wal-mart. For more details, please visit http://www.cosun- xing.com

[la-onda]

XING: Short Interest DN 53.5% to 956.2K in May 2006
Wednesday, May 24, 2006 16:22 ET

According to new short interest data from NASDAQ, short interest for Qiao Xing Universal Telephone, Inc. (NasdaqNM: XING) DECREASED 53.5% to 956,171 shares for the month ended mid-May, 2006.

SYMBOL             APRIL             MAY          CHANGE       %CHANGE     DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
XING           2,057,036         956,171      -1,100,865       -53.52%           3

Based on XING's 20-day average daily share volume of 463,185, it would require approximately 3 day(s) of buying to cover this short interest.

[Ramsburg]

Friday was an interesting session for XING, a nice gap up, then filling the gap and closing above its ascending support. The technical outlook is bullish, with this move showing what could be a fake breakout.

Also, Michael posted some great updates about XING (and CECT) on the 3SOV board, Here's the Link
(make sure you read all his 5 posts from Friday, great update;)).

The plan will be the same for now:
Hold XING with a stop @ $7.15

Best regards,

[la-onda]

Qiao Xing's subsidiary CECT to make IPO on Nasdaq in Q4
Wednesday, May 31, 2006 05:02 ET

BEIJING, May 31, 2006 (Xinhua via COMTEX) -- CECT, which has a 90 percent holding owned by Qiao Xing Universal Telephone (Nasdaq: XING), plans to make an IPO on Nasdaq in the fourth quarter of 2006 to raise 150 million US dollars, according to Beijing News.
If the listing is successful, CECT will become first homegrown mobile producer favored by Nasdaq. The chairman of CECT Wu Zhiyang have confirmed the news and said all the preparatory work has been finished. But the plan to go listing on the main board of Hong Kong has been given up.

He forecast conservatively that the IPO may raise 120 million US dollars at least.

http://www.knobias.com/individual/public/news.htm?eid=3.1.1d76a22d000af69947af0925d541c2a7e622f0447630b2d6874da117c064a73f

[AussieTrader]

Applaud Michael for the backgrounder and Oliver for the CECT IPO news.

I am back in XING today just around $8.00. The good news is piling up here for XING, earnings will be good, CECT IPO, undervalued (very), improved SEC reporting. Chart is at decent support area with a lot of upside potential.

[Michael]

Welcome onboard Aussie 

It is as usual with mixed feelings I read the press release from XING which Oliver reported in the morning. It is on one hand good news but on the other hand it is yet another example of the horrendous way XING handles Investor Relations. You always have to read between the lines

So Wu expects to rise at a least 120 million USD from CECT's IPO. This could be good news or it could be bad news 

As long as he does not tell us how much of Xing he is planning to float it doesn't tell us much.. This is obviously not for 100% of the shares of CECT so let us try to interpret the news.

Lets have a look at the ownership of CECT:



I would expect that the pre IPO investors will make their stake in CECT available for the IPO. I would also be surprised if XING would give up control of CECT so most likely Qiao Xing Universale will sell less that 32% of their shares (probably a lot less! but we are conservative here).

If correct here are the figures:

XING will receive at least 78 million USD for their stake in cash. And they will still hold 51% of CECT, which is valued at 244 million USD so their stake is worth 124 million. So all in all XING's stake in CECT will be valued at 202 million USD.

Not bad for a company who has some other significant assets. After all XING market cap is only 135 million USD.

It would be nice to have the precise figures but on the other hand if we had the precise figures we would most likely not be able to buy XING at 8 

On another note CECT has climbed yet another step up the ladder. They are now the 8th best selling handset in China 

[Ramsburg]

Another volatile session for XING today... but closing above $8 again.

Some interesting news out today:
(you cant find it in Yahoo yet, heres the link) http://www.knobias.com/individual/public/news.htm?eid=3.1.1d76a22d000af69947af0925d541c2a7e622f0447630b2d6874da117c064a73f

Qiao Xing's subsidiary CECT to make IPO on Nasdaq in Q4
Wednesday, May 31, 2006 05:02 ET

BEIJING, May 31, 2006 (Xinhua via COMTEX) -- CECT, which has a 90 percent holding owned by Qiao Xing Universal Telephone (Nasdaq: XING), plans to make an IPO on Nasdaq in the fourth quarter of 2006 to raise 150 million US dollars, according to Beijing News.
If the listing is successful, CECT will become first homegrown mobile producer favored by Nasdaq. The chairman of CECT Wu Zhiyang have confirmed the news and said all the preparatory work has been finished. But the plan to go listing on the main board of Hong Kong has been given up.

And another great update from Michael on the 3SOV portfolio:

Welcome onboard Aussie 

It is as usual with mixed feelings I read the press release from XING which Oliver reported in the morning. It is on one hand good news but on the other hand it is yet another example of the horrendous way XING handles Investor Relations. You always have to read between the lines

So Wu expects to rise at a least 120 million USD from CECT's IPO. This could be good news or it could be bad news 

As long as he does not tell us how much of Xing he is planning to float it doesn't tell us much.. This is obviously not for 100% of the shares of CECT so let us try to interpret the news.

Lets have a look at the ownership of CECT:



I would expect that the pre IPO investors will make their stake in CECT available for the IPO. I would also be surprised if XING would give up control of CECT so most likely Qiao Xing Universale will sell less that 32% of their shares (probably a lot less! but we are conservative here).

If correct here are the figures:

XING will receive at least 78 million USD for their stake in cash. And they will still hold 51% of CECT, which is valued at 244 million USD so their stake is worth 124 million. So all in all XING's stake in CECT will be valued at 202 million USD.

Not bad for a company who has some other significant assets. After all XING market cap is only 135 million USD.

It would be nice to have the precise figures but on the other hand if we had the precise figures we would most likely not be able to buy XING at 8 

On another note CECT has climbed yet another step up the ladder. They are now the 8th best selling handset in China 

XING has been trading a difficult and volatile range in a zone we think it's a good support level. We expect XING to jump on the upside at any moment, although this time we bought XING on a «catch the knife» call, we didn't wait for a true buying signal like our last trade, in other words we didn't buy  «momentum» as usual, and we are still waiting for XING to build its momentum for what we think will be a great move.

The plan:
Hold XING with a stop @ $7.15

Best regards,

[la-onda]

FYI:
CECT presentation:
http://www.savefile.com/files2.php?fid=3680761&key=681899

also some nice comments on Yahoo!:
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600481351&tid=xing&sid=1600481351&mid=103309
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600481351&tid=xing&sid=1600481351&mid=103310
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=1600481351&tid=xing&sid=1600481351&mid=103312

[Ramsburg]

XING is having some trouble crossing the $8.30 price level, forming a short term resistance there. In the other hand, since May 22nd, XING is trading higher lows, showing some strength, even with a low volume.

It's expectable to see XING trading on the $7.90-$8.30 range for the short term, but a breakout (on close) of the $8.30 mark would be a signal of a further move to the upside (the next reaction level should be only expected near $9.00).

We are just going to update our stop level and continue to Hold XING:
Hold XING with a stop @ $7.50

Best regards,

[AussieTrader]

Nice press relesae on the A1000. Wonder whether this quote is 'new' to the market 'Up to date, USD 62 Million worth of orders of this model have been received from CECT's distributors'

Here's the full release.

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
PR Newswire - June 05, 2006 09:01

HUIZHOU, Guangdong, China, June 5, 2006 /Xinhua-PRNewswire via COMTEX/ -- Qiao Xing Universal Telephone, Inc. (Nasdaq: 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.

The distinctive features of this high-end mobile phone are: 1000 hours of standby time, 4-mega-pixel auto-zoom CCD camera and MP3/MP4 media players. According to the commentators in the industry, the long standby time of this model is a Guinness World Record.

Mr. Wu Zhi Yang, Chairman of CECT and vice Chairman of Qiao Xing Universal, said, 'A1000' is drawing extensive attention from the industry commentators and the consumers upon launching. Moreover, its price is by far more competitive than similar products under foreign labels. Its good reception is within our expectation as envisaged at the design stage.

''Working closely with the market division, our R&D team has always attached great importance to consumer needs, innovation, product differentiation and optimum performance/cost ratio in researching and developing new products. In the past years, we have introduced scores of high-end mobile phones with advanced functionalities and unique value-added features at competitive prices. Most have met with varying degrees of success and helped win renown for the 'CECT' brand, which in turn helped CECT gain market share. We maintain our former estimates on an un-audited management account basis of sales revenue of US$ 250 million and net income of US$ 29 million for 2005 for CECT. It is likely, however, that the actual outcome will outperform this estimate.

''In 2006 and beyond, we will continue to focus on innovation through our efforts in R&D. We have successfully developed our own 3G mobile phone products. We expect that sales revenue will grow at a rate close to 30% from 2005 to 2006 for CECT.''