Yesterday, Qiao Xing Universal Resources, Inc. (NASDAQ:XING)
started the high trade. The stock gained 10.88% on its price to
close the day at $1.63 per share. Along with the price jump, its traded volume exceeded 1 million shares, which is a phenomenal value for XING when compared to the average volume of only 157 shares traded. Obviously, something has made the stock move up and the investors got attracted.
As the shares of XING have lost over 24% during the past 52 weeks, the only reasonable explanation on the high trade appeared to be the latest unaudited financial results of Qiao Xing, which came up yesterday. According to them, the company announced EPS of $0.12 on sales of $28.63 million for the first quarter of this year. The quarterly report stated that XING and its subsidiary held $554.4 million in cash and cash equivalents and had a working capital of $515.9 million, while its shareholders' equity totaled approximately $643 million.
Though the improved cash position of the company, XING has registered capital expenditures and its net income has decreased by 47.3%. Qiao Xing still has more assets than liabilities on its balance sheet, though it should cover its long-term obligations. The company also reported it was to clear up its relationship with its subsidiary Qiao Xing Mobile Communication Co., Ltd., however, it needed an approval by the Board of Directors first.
Looks like the first quarter results of XING don't look as much improved, as compared to the year before. Though, the company relies on the mining business and makes encouraging projection on its next quarter earnings.