XING

[AussieTrader]

If you have followed XING a long while as I have, you will know this type of release is very positive indeed. 1M CECT handsets to be sold in 2007 (that is a new sales channel so it is on top of current sales numbers)

Qiao Xing Universal's Subsidiary CEC Telecom Co., Ltd. Reaches Agreement With Renowned TV Shopping Company for the Sale of 'C1000', a Recently Launched Mobile Phone Handset Model with Over 1,500 Hours of Standby TimeLast update: 2/12/2007 7:30:00 AMHUIZHOU, Guangdong, China, Feb 12, 2007 /Xinhua-PRNewswire via COMTEX/ -- Qiao Xing Universal Telephone, Inc. (XING) today announced that its subsidiary, CEC Telecom Co., Ltd. (CECT) has recently signed an agreement with China Seven Star Shopping Limited (China Seven Star), one of China's largest TV shopping enterprises, under which China Seven Star committed to sell up to 1,000,000 units of the 'C1000' and other models of mobile phone handsets under the 'CECT' brand via its shopping platform in 2007. Starting from early January 2007, China Seven Star began to sell trendy handsets of CECT through its extensive platform and reported highly positive market response. Currently, thousands of units of CECT's 'C1000' are being sold to the end users through China Seven Star's channels per day. Mr. Wu Zhi Yang, Chairman of CECT and Executive Director of XING said, ''Our product strategy is focused on developing and marketing differentiated products to achieve higher profit margins and avoid direct competition with mass-market products. In 2006, CECT has been particularly successful in introducing and promoting two representative series of its differentiated products, 'A1000' and 'IP1000', with extra-long standby time, a feature which many business people and consumers who are constantly on the road may find desirable. The 'C1000', with standby time of over 1,500 hours -- even longer than that for 'A1000' and 'IP1000' -- was recently launched to the market ahead of the now approaching Chinese New Year holidays, which for many may last up to two weeks. The long standby time will be appreciated during long journeys for family reunions or for vacationing during this festive period in China. Since its introduction, the 'C1000' has been attracting the attention of distributors across the country, and we believe this new handset model will be successful. ''As a significant move in the pursuit of alternative distribution channels, we selected China Seven Star as our new partner to promote and sell 'C1000' and other differentiated products to be launched in the future. China Seven Star is a large-scale retailer that offers 24-hour shopping through TV channels, newspapers and related medium. Geographically, China Seven Star covers 85% of China's TV household audience through 25 satellite TV channels and market diversified products with a corporate image of 'Healthy, Trendy, Convenient and Economical'. ''We believe, the launch of CECT 'C1000' mobile phone products and the partnership with more types of resellers will further improve the brand recognition of CECT-manufactured products and significantly contribute to the growth in sales revenue and profit.''

A week or so earlier China Seven had this release:

China Seven Star Shopping Limited

Launches Trendy Handsets on TV Shopping Platform

* * *

Daily Sales Exceeds 2,000 sets Targets to Reach 1 million Sets in 2007

Aims to Becoming the Largest Shopless Handset Retailer in the PRC

(Hong Kong, 28 January 2007) – China Seven Star Shopping Limited ("China Sevenstar" or "the Group")(stock code: 245), one of China's largest TV shopping enterprises, announced satisfactory performance of its newly established handsets sales business. Commencing only from early January 2007, China Sevenstar has achieved daily handsets sales exceeding 2000 pieces, successfully built a shopless sales channel for handsets and digital products in the PRC.

China Sevenstar is a large-scale retailer that offers 24-hour shopping through TV channels, newspapers and related medium. Starting from early January 2007, the Group, through its extensive platform, began to sell trendy handsets of CECT, a PRC popular brand, and received tremendous market response. Geographically China Sevenstar covers 85% of China's TV household audience through 25 satellite TV channels and markets diversified products with a corporate image of "Healthy, Trendy, Convenient and Economical".

Mr. Ni Xinguang, Chairman of the Group, said, "We are continuously seeking to diversify product offerings to help us realize the goal of providing the most pleasant shopping platform and also most choices to our consumers. Leveraging our powerful shopping platform, in the near term we plan to launch more than 20 new handset models for at least 5 brands, each of unique style, feature and function. We aim to sell over a million handsets in 2007 and have full confidence in growing the Group's electronics division into PRC's largest shopless handset retailer in the long run."

According to the "Online Research Report of 2006 China IP Brand" released by a national authority, the number of China handset users will reach 630 million by the end of 2007, and 200 million domestic customers are expected to replace their handsets this year, demonstrating huge potential for the PRC handset retail market.

[David Randolph]

Thanks for posting the news AussieTrader

Short term traders might see yesterday's session as a "sell on positive news" type of reaction, which can be considered bearish.

But the way I see it bulls were eager, as they always are when at a profit, to put that profit in their conservative pocket before the market takes it away, they think.

They sell with a small profit, but remain watching the stock, and will probably get back in at a higher price somewhere down the road.

Technically yesterday was the fourth day that XING closed above the $17.17 resistance level. Fundamentally the company looks to be worth triple of the current market value, at least.

So, nothing else to do but to sit tight holding XING through the short term turbulence.

[rickjust]

hi,
an article came out  in the motley fool today entitled :

Qiao Xing Universal Telephone: A Chinese Nokia in the Making?
.
http://www.fool.com/investing/international/2007/02/13/qiao-xing-universal-telephone-a-chinese-nokia-in-t.aspx?source=eptyholnk303100&logvisit=y&npu=y

will create more interest for the stock no doubt
maxi

[David Randolph]

Yep, great article rickjust, thanks for posting

I guess all the "take profits on the good news" and "sell because the stock is going down on good news" type of traders are out of the way now. It's time for investors to take XING to new highs above $18.

[brandyjoco]

Aussie Trader,

I am really happy with Xing.  It is going up nicely in a tight upward channel .  I only have about 2000 shares but I would like to hold long term and add a little during this run if it drops sometime in the next couple of days.

[raspi]

Institutional holdings continue to increase.... at 26.8% today.. It feels like XING is emerging from the shadows into the stage lights :-)

[voova99]

Yep,

http://www.nasdaq.com/asp/Holdings.asp?symbol=XING&selected=XING&page=holdingssummary

[David Randolph]

Thanks for the information about institutional ownership raspi and voova99. That's what XING needs to be rewarded a fair valuation. I guess a "fair" average valuation would put the stock above $40

I guess all the "take profits on the good news" and "sell because the stock is going down on good news" type of traders are out of the way now. It's time for investors to take XING to new highs above $18.

Investors responded to the call and XING closed at $18.1, a new seven year high.

Just sit tight and let XING fill your pockets with cash.

[Melf Elf]

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.  MADE on January 30

4. 19.06 - Measured Move off the Channel breakout

Target #4: 19.06 MADE right after the open.

All four targets MADE just one month to the day after the January 16 DOUBLE breakout, on January 16.

[la-onda]

finally it is just awesome thanks MelfElf

(in @ 12.74$)
cheers
O.

[voova99]

David

I hope you feel better. 

We have a little news  :
http://biz.yahoo.com/seekingalpha/070218/27360_id.html?.v=1

Best,
Vova

[David Randolph]

David

I hope you feel better. 

We have a little news  :
http://biz.yahoo.com/seekingalpha/070218/27360_id.html?.v=1

Best,
Vova

Much better, thanks voova99

The article on the link you provided is a perfect summary to why XING is a great investment. Revenue and earnings growth is very high and valuation is too low.

I especially enjoyed this part:

«As a result Ng pushed his 12-month price target for the company from $17.44 per share to $20.24 per share, at which the stock is trading at 12.9 times P/E for the full year 2006 and a conservative 8.0 times for the full year 2007.»

Nobody would be offended and XING would still be cheap if it traded at double those multiples. The multiple expansion alone would put XING in the low $40's.

However, there was a form SC 13 G/A filed with the SEC on the 14th of February, 2007 that is making my head spin. It says DKR Capital Partners LP holds 66,000,000 Convertible Bonds convertible to 6,801,364 shares of common stock, subject to 9.99% limitation.

Since the company never filed a form 10 with the SEC (in fact, on Yahoo Finance the link SEC files for XING is empty), we don't know how many of these convertible bonds are out there. They represent dilution to existing shareholders when converted.

But the market took the SEC file pretty well, as the stock rose 6.41% since it was published. Perhaps institutions already knew about this. With the share count we currently have, which is 23.74 million shares outstanding, the 6,801,364 shares attributable to DKR Capital Partners LP on conversion would represent 22.27% of the company, so it can't be done. 9.99% are "just" 2.37 million newly issued shares.

Maybe the existence or possibility of existence of convertible debentures was a factor holding XING back. Maybe the market was positively surprised by this form SC 13.

Voova99, did you knew about the existence of this form and what are your thoughts on it? Since XING is your sole holding, you have time to search and study every piece of information about it

I'll continue holding XING.

[AussieTrader]

The filing relates to an amendment following the conversion of warrants and sale of stock held by DKR during Q4.

This info is well known and not new. DKR exercised around 2M warrants and sold 2.5M+ shares late last year. Thus giving some dilution in the quarter. The 14th Feb file reflects the new numbers that DKR hold after those transactions.  181K shares held (down from 2M filed in Nov and 400K warrants down from 2.5M filed in Nov)

The bonds did not change and are the same as previous (only DKR have these bonds)

[David Randolph]

The filing relates to an amendment following the conversion of warrants and sale of stock held by DKR during Q4.

This info is well known and not new. DKR exercised around 2M warrants and sold 2.5M+ shares late last year. Thus giving some dilution in the quarter. The 14th Feb file reflects the new numbers that DKR hold after those transactions.  181K shares held (down from 2M filed in Nov and 400K warrants down from 2.5M filed in Nov)

The bonds did not change and are the same as previous (only DKR have these bonds)

Thanks for clarifying the issue and providing this relief on XING, worth a 5 point increase to your rating Aussie

[voova99]

Thank You , Aussie

Here is detailed summary of share holdings from
yahoo MB :

http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_Q/threadview?m=tm&bn=20255&tid=160228&mid=160228&tof=15&frt=2


Best,
Vova