Qingmei

Good news. Within 20 mins, there are about 20M share transfered. It seems that someone bought at lower price and quite already. The price is almost not affected.
 
If this happened in one week ago, the price dropped 20%.
 
I will not quite unless 100% profit.

China acts to boost loans, bolster flagging economy
 
 
www.reuters.com/article/2012/05/12/us-ch...dName=topNews&rpc=71
 
roll.sohu.com/20120513/n343037866.shtml
 
股市：A股明日高开上扬无悬念

onference call with CFO Just got over with a conference call with Mr. Jackson Tso, CFO of Qingmei Group Holdings. This call was coordinated by Ms. Wrisney Tan from August Consulting (Qingmei's PR firm). Interestingly I was the only one on the conference call. Please find detailed below the gist of the call: Q: What happened to turnover in 3Q2012 with revenues falling by 54.6% as compared to 3Q11. A: They had come out with a profit warning prior to the results release. Apparently shoe manufacturers had overstocked on shoe soles in previous quarters and with a slowdown in demand for shoes, that led to a drastic reduction in orders for Qingmei. Jackson estimates that 3Q12 was the low point as far as Qingmei is concerned and things can only look up from here. We can only wait and see... Q: What is the outlook for 4Q12? A: Should be better than 3Q12. However the slowdown in demand will will last for about six months till the overstocking situation at the shoe manufacturers end gets sorted out and we see demand turning more normal. Q: What is the outlook for FY2013? A: At this point of time they would not like to make any projections. Q: Who is involved in the massive volumes on the stock that we have recently seen? A: They have no idea. Q: Have any clients stopped doing business completely with Qingmei leading to the massive drop in revenues? A: Qingmei still has all their customers intact. It's just that due to reasons mentioned above the orders across the board for all companies in the shoe manufacturing business has gone down drastically. IN FACT I WOULD APPRECIATE IF ANY FORUM MEMBERS COULD ANALYSE RESULTS OF SHOE / SHOE SOLE MANUFACTURING COMPANIES IN THE PRC AND SEE IF THIS IS A GENERIC TREND ACROSS THE BOARD. Q: What has happened to the website development for Qingmei. I had raised this question during the AGM last year and was told that the website would be up by Dec 2011. However we have seen nothing so far. I tried to make Jackson and Wrisney appreciate the fact that for a relatively large company to have no website in today's times is quiet odd and would be a definite putdown for potential investors. A: The website will be up and running in June 2012. (GUESS WE WILL AGAIN NEED TO WAIT AND WATCH...) Q: Considering that the net cash hoard with the company is now around S$94 million I wanted to know about their plans for dividend payouts in 2012. Also seeing turnover down so drastically their working capital needs should also have come down quiet a bit. A: The board will take a decision on this at the right time. Jackson assured me that he will put forward shareholder views to the board.

Thanks Peter to share the info here. I wanted to join but I have no conference call number. Do not share too much comments here. I think some traders will take advantage of your sharing info. Invest it for middle/long time and do not put too much money on one share.

Thanks Peter for sharing the info. What are your thoughts on the stock price now?

the price has certainly stablised over the last 1 week or so. it must have bottomed out. The institutional selling by Hunter Hall must have stopped. There is money to be made in shoe sole manufacturing. I would like to accumulate (not average down) around 7 cents. This is a sepcial situation where the brave and mentally strong investors (with a bit of faith in management) can make huge profits. At 7.2 cents, Qingmei is potentially a 2 bagger, at least.