Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
IPTK Check it out
http://www.bizjetmobile.com/services.html
UTRA revoked: NOTE: No SEC Suspension or publicized Admin Proceeding prior to revocation.
http://www.sec.gov/litigation/admin/2013/34-70536.pdf
I believe coming soon ..IMO..shareholder lawsuit settlement...pr
about the time,then start of all filings and then pps at $5
...all imo....
still UTRA hits new highs and staying above $1. Interesting trading going on.
That close Wednesday was criminal. Dropped from the $1.20's to .98 on like 300 shares on that last trade.
Picking some up here
MK
$0.68 on over 800,000 shares.
Not much respect being given to this legit. Chinese company that has a B.V & cash in value much higher than that.
It also has a decent growthrate although I would like to see the 2011 annual report to comfirm that to still be the case.
Universal Travel Group Announces Its Intent to Voluntarily Delist Its Common Stock From NYSE and to Continue to Comply With the Securities Exchange Act of 1934
SHENZHEN, China, April 16, 2012 /PRNewswire-Asia-FirstCall/ -- Universal Travel Group (NYSE: UTA - News) ("Universal Travel Group" or the "Company"), a leading travel services provider in China offering package tours, air ticketing, and hotel reservation services online and via customer service representatives, today announced that it intends to file a Form 25 with the Securities and Exchange Commission (the "Commission") to effect the voluntary withdrawal of UTA's common stock from listing on the New York Stock Exchange (the "Exchange"). The Company plans to file the Form 25 with the Commission on or about April 26, 2012.
The Company is voluntarily withdrawing its common stock from listing on the Exchange based on certain correspondence from the Exchange to which the Company cannot respond in full within the time frame that the Exchange has demanded. The Exchange has indicated that the Company faces the prospect of delisting due to the Exchange's concerns relating to the issues raised by Windes & McGlaughry Accountancy Corporation when it resigned as the Company's independent public accounting firm in April 2011, including with respect to the adequacy of the Company's cooperation in the audit being conducted by Windes prior to its resignation and the authenticity of certain documents provided to Windes in connection with the audit, as reflected in the Company's Form 8-K filed April 14, 2011 and exhibits thereto; on-going delays in the filing of certain periodic SEC filings; the Exchange's concerns with respect to the adequacy of certain of the Company's filings in light of the extensive comments that the Company has received on such filings from the SEC Division of Corporation Finance; certain discrepancies between and among certain of the Company's PRC subsidiaries' filings with the PRC's State Administration for Industry and Commerce and its SEC filings; the Exchange's concerns with respect to the accuracy of certain information provided by the Company to the Exchange; the tax implications of the Company's cash payments for acquisitions in 2010; and the adequacy of the Company's internal controls.
The Company believes that these concerns are either unjustified, have already been addressed or can be alleviated with additional time. The Company, however, does not believe that it will be able to regain compliance with the Exchange's continued listing standards in the near future. Moreover, since a trading halt was implemented by the Exchange on April 12, 2011, the Company believes that it is in the best interests of its shareholders to have its stock trade elsewhere rather than having trading remain halted indefinitely on the Exchange.
Following delisting, the Company will continue to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, and by the next 10Q reporting date, intends to regain compliance in connection with the timely filing of all periodic and other reports with the SEC under applicable federal securities laws as required.
The Company expects that its common stock will cease to be listed on the Exchange upon the effectiveness of its withdrawal from listing, which will occur ten calendar days following the filing of the Form 25. The Company anticipates that its common stock will commence trading on the grey market under a symbol yet to be determined.
The Company can provide no assurance that its common stock will trade or continue trading on the grey market or in any other market.
About Universal Travel Group
Universal Travel Group Inc. (NYSE: UTA - News) is a leading China-based travel services provider, focusing on the domestic tourism market for leisure and corporate travel and offering packaged tours, air ticketing, and hotel reservation services. The Company targets geographic expansion in underpenetrated travel markets in central and western China; and it has established a second operation base in Chongqing. With the Chinese disposal income continuing to rise driving demand for domestic leisure services, the Company continues to benefit and dominate packaged tour businesses. The Company operates multi-channels sales with 24 hour call centers, online website, owned and franchised sales offices and various wholesale channels. For more information, please visit Universal Travel Group's website at us.cnutg.com.
For investor and media inquiries, please contact:
Universal Travel Group Inc.
Mr. Jing XIE, Secretary of Board & Interim Chief Financial Officer
Tel: 86-755-86319549
Fax: 86-755-86319348
06@cnutg.com
Website: us.cnutg.com
Christensen
Kimberly Minarovich
Tel: +1 212 618 1978
Kminarovich@ChristensenIR.com
Christian Arnell
Tel: +86 10-5826-4939
carnell@ChristensenIR.com
Email response from NYSE:
FW: Universal Travel Group (UTA) - Trade halt update
FROM:
XXXXXXXXX
TO:
XXXXXXXXX
CC:
'jwu@christensenir.com'
Message flagged
Tuesday, November 15, 2011 4:27 PM
Your email has been forwarded to me for a response. I am afraid that we cannot comment to individual members of the public about regulatory matters relating to listed companies. However, I can provide you with some general guidance as to our policies and procedures with respect to trading halts.
The Exchange appreciates and is sympathetic to the difficult position in which shareholders of a listed company find themselves when trading in the company’s stock is halted, and is always committed to lifting any trading halt, if appropriate, as soon as possible to enable shareholders (and those holding a short position) to exit their investment if they so desire, or to initiate delisting if warranted. However, among a listing exchange’s primary regulatory obligations is to assure that in the absence of full and complete disclosure by a listed company, trading is halted to avoid any unfairness to all market participants. There is longstanding SEC legal precedent that an exchange must consider the interests of potential future buyers of a security ahead of the interests of existing investors. In the absence of full disclosure by a listed company, a listing exchange is obliged to halt trading to protect the interests of potential future buyers who might otherwise make an investment without all information required to be disclosed under the federal securities laws and exchange rules.
When trading in a company’s stock has been halted due to regulatory disclosure concerns, it is not possible to estimate how long it will take to either lift the trading halt or move to delist the company. The Exchange’s action is dependent on, among other things, how quickly the company responds to the Exchange’s information requests and how cooperative the company is in making the appropriate disclosures. In the course of its review and investigation, the Exchange may become aware of information that will lead to a conclusion that the company should be delisted on public interest or other grounds. The Exchange will only take delisting action after it has thoroughly considered all relevant facts and circumstances, so it is difficult to predict how long such action may take, as the Exchange’s experience varies widely with respect to how long it takes to gather all of the pertinent information and then analyze it.
It is important to note that listing is a voluntary decision by a public company. A listed company is always free to choose to voluntarily delist, which will generally open up trading on the pink sheets or OTCBB, subject only to the possibility of an SEC trading suspension. Moreover, under applicable SEC rules, listing exchanges are required to provide due process to any company subject to delisting, which includes the right to appeal to a committee appointed by the exchange’s board. Many companies avail of this appeal right which extends to the conclusion of the appeal process the period of time it takes to delist a company. In addition, any trading halt will continue pending the final outcome of that appeal. As noted above, if a company does not appeal a delisting action or voluntarily delists (if no action is pending), the trading halt will not be applicable once listing terminates.
Regards.
XXXXXXXXX
From: XXXXXXXXX
Sent: Tuesday, November 15, 2011 12:12 PM
To: NYSEDOTServices
Cc: jwu@christensenir.com
Subject: Universal Travel Group (UTA) - Trade halt update
Hi,
I am a shareholder in UTA:NYSE from Apr 12 2011, couple of days before UTA was halted from trading.
I would really appreciate if some information is shared with the shareholders about the status on this halt. UTA stocks were purchased especially because it is trading with one of the world's best stock exchanges, so it would be a great level of responsibility from the part NYSE to update the shareholders on any pending decision.
Thanks,
XXXXXX
Please consider the environment before printing this email.
Visit our website at http://www.nyse.com
*****************************************************************************
Note: The information contained in this message and any attachment to it is privileged, confidential and protected from disclosure. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender immediately by replying to the message, and please delete it from your system. Thank you. NYSE Euronext.
UTA travel booking website traffic continues to grow.... http://www.alexa.com/siteinfo/cnutg.com#
When will trading resume, reports are in but still showing as a T1 halt
UTA uploaded June 2011 Investor Presentation with unaudited financials for Q4'10 and FY 2010:
http://content.stockpr.com/utvg/media/71f275d2916297159bf6e3fe7bd3d088.pdf
Christensen IR
Kimberly Minarovich
Tel: +1 212 618 1978
Kminarovich@ChristensenIR.com
On April 15, 2011, the plaintiff Albert Snellink commenced this putative class action in the United States District Court, District of New Jersey against Universal Travel Group (the “Company”), and Jiangping Jiang, Yizhao Zhang and Jing Xie, officers of the Company. In the complaint, plaintiff alleges a claim for violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), against all defendants, and a claim for a violation of Section 20(a) of the Exchange Act against the individual defendants in connection with purported misrepresentations contained in the Company’s public filings and press releases. The complaint seeks unspecified compensatory damages, and his costs incurred in the action. The Company’s time to answer or move with respect to the complaint has not yet expired. The Company believes that the allegations of complaint are without merit, and intends to vigorously defend the lawsuit.
On June 7, 2011, EFP Rotenberg, LLC ("Rotenberg"), the independent registered accounting firm of Universal Travel Group (the "Company") advised the Company that the Company's financial statements for the three, six and nine months ended March 31, 2010, June 30, 2010 and September 30, 2010, which are included in its Forms 10-Q (the "10-Qs") for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010, respectively, did not properly account for the following item in accordance with United States generally accepted accounting principles, and, as a result, cannot be relied upon:
1. An inconsistency between the acquisition dates of the Company's five new subsidiaries per the Company's 8-K filings and the reported periods of profit and loss statements included in the consolidated financial statements of the 10-Qs.
The Company's Audit Committee, as well as its management has discussed the matters in this Current Report on Form 8-K (the "8-K") with Rotenberg.
The Company has provided Rotenberg with a copy of the disclosure in this 8-K prior to filing the 8-K with the Commission, and has requested Rotenberg to furnish to the Company a letter (the "Letter") addressed to the Commission stating whether Rotenberg agrees with the statements made by the Company in response to Item 4.02 of the 8-K. The Company is hereby filing the Letter as an exhibit to the 8-K.
Kimberly, thanks a lot for the update. Perhaps this one will trade again and actually do well!
Steve
uta update , this is a reply I received today from their IR firm
UTA reported its 2010 year end results, as you know. Now, they must report Q1 results. Thereafter, we should have a better update for you regarding when the stock can trade again.
Regards,
Kimberly Minarovich
Managing Director
Mobile: 917-533-3268
www.christensenIR.com
Wow, great news, 1vman! Thanks for passing that along as I certainly had not seen it.
Steve
All not lost uta's auditor has cleared client acceptance procedures and has begun a new audit, I would assume they begun with the issues the previous auditors had, if they come to a mutual agreement soon the rest would be just double checking , shorts could really get stung here when uta opens. Check out web site for the press release at http://us.cnutg.com/
Form 8-K for UNIVERSAL TRAVEL GROUP, i.e., Shareholders screwed
14-Apr-2011
Changes in Registrant's Certifying Accountant, Financial Statements and Ex
Item 4.01 Changes in Registrant's Certifying Accountant
On April 10, 2011, Universal Travel Group (the "Company" or "we") received notification that its principal independent accountants, Windes & McClaughry Accountancy Corporation ("Windes") had resigned its engagement with the Company effective April 9, 2011. Windes was engaged by us on September 30, 2010. Windes' resignation as the Company's principal independent accountant was accepted by the Audit Committee on April 11, 2011.
The following reportable disagreements occurred within the period from Windes' engagement through the date of its resignation, which if not resolved to the satisfaction of Windes, would have caused it to make a reference to the subject matter of the disagreements in connection with its report.
Windes had informed the Company in its resignation letter that it was no longer able to complete the audit process. Windes stated this was due in part to Management and/or the Audit Committee being non-responsive, unwilling or reluctant to proceed in good faith and imposing scope limitations on Windes' audit procedures.
Windes also stated that Windes had lost confidence in the Board of Directors' and the Audit Committee's commitment to sound corporate governance and reliable financial reporting.
Prior to its resignation, Windes raised the following issues (some of which may be considered to be disagreements) encountered during the audit, including issues related to the authenticity of confirmations, a loss of confidence in confirmation procedures carried out under circumstances which Windes believed to be suspicious; issues concerning the lack of evidence of certain tour package contracts and related cash payments.
As a result, Windes had requested authority to perform additional audit procedures and the above issues to be addressed by an independent Audit Committee investigation. Windes stated in its resignation letter that, in its view, the Company was not willing to proceed in good faith with the course of action requested by Windes. Windes also stated in its resignation letter that in its opinion, Windes believed that certain statements made by Management and the Audit Committee, between March 29, 2011 and its resignation letter, impaired its independence as it related to the Company.
We disagree with Windes' reasons for resignation, in particular Management and/or the Audit Committee's purported unwillingness or reluctance and/or non-responsiveness to proceed in good faith and imposition of scope limitations on Windes' audit procedures, the Company's purported unwillingness to proceed in good faith with courses of action requested by Windes and Management and the Audit Committee's purported impairment of Windes' independence in relation to the Company a result of certain statement made by them.
We believe that we have acted responsively, prudently and in good faith to address the numerous issues raised by Windes during the entire audit process. Windes disagrees. Management, the Audit Committee and Windes attempted to resolve these disagreements to no avail.
The Company has authorized Windes to respond fully to the inquiries of its successor accountant regarding the subject matter of each of such disagreements.
Windes has not provided any opinions, qualification or modification to our financial statements for each of the past two fiscal years. The Company does not have, as otherwise disclosed above, any other disagreements or reportable events as described under Item 304(a)(1) of Regulations S-K.
We provided Windes with a copy of this disclosure before its filing with the SEC. We requested that Windes provide us with a letter addressed to the SEC stating whether or not it agrees with the above statements, and we received a letter from Windes stating that it agrees with the above statements. A copy of this letter is filed as an exhibit to this report.
New Independent Accountants
Our Audit Committee of our Board of Directors approved the appointment of EFP Rotenberg & Co., LLP ("Rotenberg") as our new independent registered public accounting firm effective as of April 12, 2011 and Rotenberg has agreed, subject to the Company clearing their client acceptance procedures, to act as our new independent registered public accounting firm. During our two most recent fiscal years and through the date of our engagement, we did not consult with Rotenberg regarding either (1) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements, or (2) any matter that was either the subject of a disagreement (as defined in Regulation S-K Item 304(a)(1)(v)).
Prior to engaging Rotenberg, Rotenberg did not provide our Company with either written or oral advice that was an important factor considered by our Company in reaching a decision to continue the appointment of Rotenberg as our new independent registered public accounting firm.
As a result of Windes' resignation, we will not be able to file our Annual Report on Form 10-K by April 15, 2011. We are committed to work with Rotenberg to complete the audit for fiscal year 2010 as soon as practicable and will file a Current Report on Form 8-K to announce when our annual report for fiscal year 2010 will be filed once we are able to ascertain the timing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
16.1 Letter dated April 14, 2011 from Windes & McClaughry Accountancy Corporation to the Securities and Exchange Commission.
99.1 Press Release, dated April 14, 2011, issued by Universal Travel Group.
Alex rankings (China):
UTA - 800
eLong - 350
eLong is purely online, and gets 90m revenue from there. Recently UTA has been firing on all cylinders on web traffic. Only difference is eLong trades at 100+ P/E.
Traffic ranking of eLong has also been stagnant for 2010, UTA has been shooting up.
*sigh* these Chinese RTOs are a tricky bunch.
Thanks, 1vman for the tip. I've been looking on Yahoo finance and the message boards over there. Saw one link--after reading Pappy's post--that merely took one to the bare bones filing wherein it stated the halt was issued today with no further clarification.
Saw one interesting post which I've copied below. It's mildly hopeful, but I don't expect this will end well. But nothing to do now but wait. Here's that post:
"so like, i just tried calling their shenzhen head office 5min ago, i guess a lot of people in the US already made contact with christensen, however, I still wanted to give their head office a try, hoping to find a different answer in chinese..the operator was pretty nice, after pressing 0, within 5sec of music time, the lady picked up. I told her that I'm an investor and wanted to ask some questions, she then transfered me to their PR (somehow i think she transfered me to their lawyer though..she spoke too softly..but i heard ??(lawyer) where a guy picked up. So here are the key phrases that i remembered:
1. ????push (doing their best to push the auditors)
2. ???4/15???????? (should have news before 4/15)
"He was conservative and very careful with the words that's coming out of his mouth, at one time i act like i was about to cry, and he laughed a lil and said he knows what's going on, and that a lot of people have called him already regarding this matter, and that they are doing their best to push the auditors. I guess a lot of people here wanted to call China and ask, so..hopefully this call helped a lil..if not...hey..at least the phone works right?"--written by: ouch!!!!
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_U/threadview?m=te&bn=95607&tid=13276&mid=13276&tof=4&frt=2#13276
Try yahoo finance message boards ,you might have to sign up first but there is more info and links regarding the T1 halt , you will have to put in the full company name in ,not the symbol uta
Thanks for the clarification, Pappy. I appreciate it. Looks like it happened today. So much for getting out of this on the 15th.
Steve
Yes =hALTED PENDING NEWS.
Has UTA been halted? Can't find a PR to confirm it, but there's no shares being traded and someone mentioned on the CGS board that it was.
Steve
OT: Hullabaloo, nice picture. Where is that?
Thanks,
Steve
huh? they were called out for being a scam many months ago. this is not their first red flag
From sliced bread to shady. How can things change that fast? I swear ihub is in on it.
what a shady little company.
Congrads UTA you have just received another award.
[The Dumas Accounting award]
Just happened, Good Call...
The Chinese Small Cap Sector - The Other Side of the Rain
Many of us in our posts here are comparing the miniscule market capitalization of many of the Chinese small cap companies to the otherwise much higher valuations warranted by the strong past performance and the strong growth forecasted into the future and then express frustration, suspicions and despair due to the huge dichotomy between these two values.
I find it screamingly obvious that the relationship between market values and fundamentals across this sector is broken according to any common norms or benchmarks. Please note that I am referring here mostly to Chinese companies that are focused on and operative within the Chinese domestic markets and have no export activity.
As an indicative example, please consider the price chart and the declining P/E Ratio of CNIT (China Information Technology, Inc.) throughout this crisis, beginning at its preceding top in October 2007:
During the period between October 2007 and February 2011 the EPS for the years 2007 until 2010 grew 2.2 fold from $0.33 to$0.73, a blistering compound annual growth rate of 30.3%, yet the share price declined by 56% from $10.5 to $4.6 and the P/E Ratio declined by 81% from 32.8 to 6.3, drawing better than words how the ascribed risk shoot up and the sentiment fell off a cliff to the bottom of the barrel. To date, there is no indication that CNIT's growth may weaken going forward.
In particular, the declining price pattern that started for CNIT in October 2009 and continued until end of February 2011 ($8.0 to $4.6) is highly typical across this entire sector's price behavior during the past year. Even more so if we consider the fact that during this later period the broad market continued to rally additional 22%.
Having made this broad observation, I find it reasonable to assert that the companies themselves are not to blame. The answer must lie elsewhere.
And if we understand that the crowd behavior and its sentiment drivers are where to look - given the recent dark wave of allegations with respect to the entire Chinese small cap sector as being systematically fraudulent - we get our answer.
Clearly, the worst financial crisis in recent history and the collapse it caused has impacted investor psyche in a big way. In these post-crisis times, having stared at the abyss not too long ago, we are still carrying post-traumatic types of emotional weaknesses that influence abnormally our investment mindset and practices.
As we human beings are being threatened and hurt, our rational and enlightened mind recedes into our emotional tribal mind, which recedes into our instinctive survival mind, all depending on the level of threat and despair. The effect on our common crowd behavior is as if our elevated cultural evolution receded to darker periods in our history. For in-depth understanding of our crowd behavior as investors I recommend reading the book "The Psychology of Technical Analysis" by Tony Plummer.
As simple examples to consider, we may develop distrust and animosity towards different and remote people and cultures (they become the enemy), and conspiracy theories are easy to develop and get a hold (all Reverse Mergers done by Chinese are suspects of fraud as part of a pervasive scheme).
We are all essentially subject to a natural law which organizes individual behavior through the influence of group activity. And fear is likely to drive most of us straight into the arms of the crowd. And as top traders know, the crowd always loses in the end.
In this unregulated online exchange of information and opinions we are all taking a part, any stranger can cast doubt and spread fear by making allegations without stating conflicts of interest or having tangible evidence. It is common knowledge that the Chinese belong to historically separate and unfamiliar culture and different behavior patterns and therefore could be easily misinterpreted and abandoned if indeed dark and primitive emotions emerge and govern the scene. So under such extreme distrust and licentious environment, who would risk investing in a Chinese small company that might very well turn the next day to be accused of fraud? During the past year it seemed to be as dangerous as walking in a minefield. The encounters between ruthless short traders who smelled the fear in the air and their sheep-like insecure pray culminated in a blood bath that has racked up devastating losses for many shareholders.
Yet those of us who are able to regain their rational and independent mind from the oppressive direction of the crowd, may very well assert firmly that the correct and wise broad perspective is that China is a phenomenal growth story that is based on nationwide systematic innovation and investments, flexible adaptation and fast learning, and efficient and tireless execution of the central government growth programs, and many of these able entrepreneurs who reached out to the Mecca of the capitalistic free world for the best of reasons, overcoming great obstacles, will grow their companies in unprecedented rates with almost zero debts in still highly lucrative and unsaturated huge domestic markets. And in contrast, the US economy still needs to reach the stage where it can stand on its own following the FED's $2 trillion money-printing program, and the necessity to reduce the astronomical deficits and escalating debt levels is a very tall order. For an enlightening reading about the Chinese civilization I recommend reading a series of articles here.
It should be acknowledged that by the end of 2011 the majority of these companies will be trading on Wall Street and reporting to the SEC for their fifth consecutive year, a sufficiently distanced time from the early days following their typical Reverse Merger debut.
This Reverse Merger debut (reverse IPO) is the single most highlighted indicator to pinpoint a fraudulent Chinese company according to the governing fraud conspiracy rhetoric. Yet many of these companies have already engaged top tier accountant and law firms and have substantially improved their transparency and timely reporting as well as having been qualified for up listing to senior exchanges. I find it absolutely absurd to conclude at this point in time that these companies came to Wall Street in droves just to cheat for five consecutive years and counting, manipulating top professionals and paying hundreds of thousands of dollars as fees each year just for keeping this grand scheme alive. And correct me if I'm wrong, none of the accused firms (e.g., HRBN, YONG, CBEH, CEU, CCME, CHBT, ONP, CGA, CAGC, CSKI, CHNG, altogether I believe no more than one or two dozen) were delisted or legally proven as fraudulent to date.
As a final remark with respect to the Chinese entrepreneurs who are ill treated almost to the level of scoundrels by the all too many bashers of late: It is worthwhile appreciating their deep cultural heritage as there is a very real advantage of being part of the oldest living civilization. The values of culture and of being civilized have existed in China so long that they have soaked right through the whole people. Even a poor Chinese with no education is likely to have the instincts and bearing of an educated man. It is in their nature to set great store by such things as personal dignity, self-respect, and respect for others. And they have tremendous hunger and aptitude for education, which is one of the reasons why the future progress of China is likely to be amazingly rapid.
So as the problem lies in the crowd psychology domain, so does the solution. The distortion in the crowd behavior will be mended as this historic crisis continues to heal over the next several years and broad senses of normalcy and confidence are gradually restored. Time reveals truth and justice, and in this particular case the systematic and robust growth of the large majority of these companies will be depicted by the credibly audited financial statements. And the wave of fraud allegations will lose most of its hot air as there is a certain limit to how many times few can cry 'wolves' and they never really come.
A realistic and sound investment horizon that perhaps must be considered in order to benefit from the market capitalization recovery of this sector may be five years from today. I believe it is conservative to assume that many of these companies will grow their EPS by 15% to 20% per year and gradually be granted a P/E Ratio of 20 to 25. This implies that the Chinese small cap sector in all likelihood is a ten-bagger. We all can do our own calculus with respect to our chosen investment candidates based on our best analytical scrutiny. The key point here is that there will come the time when these Chinese companies will regain their credibility and be evaluated in full according to their consistent and dependable performance. It is my solemn observation that the dire sentiment has reached its nadir and it is only a question of time and an invisible match to fire it all up. Perhaps the time will be ripe later this year as 2010 10-Ks will be reported and 2011 estimates will be released and the first half results will be supportive of these estimates.
Good luck to all who are of the same line of independent thinking. It may very well spell an investment opportunity of a life time.
2009's 10-k filed on 2010-03-05.
So, I would think we are very close.
2009's 10k....
10-K Documents Annual report [Section 13 and 15(d), not S-K Item 405]
Acc-no: 0001144204-10-011857 (34 Act) Size: 2 MB 2010-03-05 001-34284
10661765
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001336644&type=10-k&dateb=&owner=exclude&count=40
Clues are surfacing for short term hit:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60537338
Worth having some cash available if it happens. Turned out to be profitable hit piece yesterday for CCME if you bought near lows of day.
Air Traffic Growth In China acc. to: "Credit Suisse's Fabulous Presentation On What China Will Look Like In 2015" report
Read more: http://www.businessinsider.com/credit-suisses-fabulous-presentation-on-what-china-will-look-like-in-2015-2011-1?utm_source=Triggermail&utm_medium=email&utm_term=10+Things+Before+the+Opening+Bell&utm_campaign=10Thing_NL_03012011#air-travel-is-really-set-to-accelerate-13#ixzz1FLyaeNEZ
Universal Travel Group Inc. Announces Additional Franchisees in 5 heavily populated regions
looks to me like a great source of revenue growth for UTA. Maybe we''ll see more mainland Chinese groups sightseeing the US in tour packages in coming years (how about 2 weeks of East Coast US starting at Disney World Orlando, NYSE & Statue of Liberty NYC with a stop to Atlantic Beach/casinos, Niagara Falls...). That's $$$, isn't it?
http://finance.yahoo.com/news/Universal-Travel-Group-Inc-prnews-2728341099.html?x=0&.v=1
By receiving a International Travel License UTA has gained not only another source of future revenue & growth but this will also increase margins since they will no longer have to pay a fee to others.
The fee will instead be paid to UTA.
I do wonder why some Institutions like Par have decided to sell their position at a time when the future looks so bright.
I realize its been a uphill battle for all Chinese r/mergers with p/e ratios continuing to shrink while growthrates continue strong.
I also believe we are very close to rock bottom values & the shorts are running thin on targets to hit although they did a good job on cagc today.
Or was it just the effects on cagc products from the long draught in China.
I am looking forward to UTA reporting on time sometime next month although a date has yet to be released to my knowledge.
That's ok, they were eaten up by Rochdale and Oxford. Their loss.
UTA - institutional ownership update to recent article...
http://seekingalpha.com/instablog/814251-natty-greene/138941-update-to-uta-s-institutional-ownership
I also agree that that projection is certainly overdone. We cannot realistically expect Q4 rev to double yoy. The purpose of that post is to show what a dramatic effect a 100% yoy increase of the Package Tour rev would have on a company like UTA who derives about 70% of its rev from that segment which has the highest growth among all travel segments. Comparatively, CTRP grew its Q4 rev by only 39% yoy despite the 108% increase of its PT rev since PT makes up only 12% of CTRP's total rev. That's the main difference b/w these two companies.
You attributed CTRP's rev growth in the PT sector mainly to acquisitions. Sure, Wing On Travel and ezTravel contributed about 2/3 of the yoy growth for CTRP's packaged-tour revenues. But UTA also made last year 5 acquisitions, all in that sector. Last Q it was able to grow total rev by 55%, almost half of it came from the 5 acquisitions:
Revenues for the three months ended September 30, 2010 were $46,290,131, compared to $29,784,918 for the same period in 2009, an increase of $16,505,213, or approximately 55%. The contributions from the five newly acquired subsidiaries were $11,551,294, or 24.95% of our total revenues for these three months. Excluding this effect, revenues for the three months ended September 30, 2010 were $34,738,837, compared to $29,784,918 for the same period 2009, an increase of $4,953,919, or approximately 16.63 %.
We have expended considerable efforts to expand our businesses, especially the packaged tour business. This resulted in the acquisition of five new packaged tour subsidiaries this year. For that reason, along with the strong demand for travel demand as a result of the growth of the Chinese economy, and the continuing effect of the Chinese government’s stimulus package, our revenue for the quarter ended September 30, 2010 increased significantly from the same period the year before.
So I do expect much that yoy growth to continue into Q4 as the acquistions were not there in 2009. Considering rev grew 55% yoy in Q3 and allowing for some weakening due to seasonality (as reported by CTRP), I am expecting about 50% yoy growth in Q4. This means:
Q4'10 rev = 51.3MM (=50% yoy increase)
EPS = 0.48 (E)
Full Year 2010:
$160MM revenue (=63.9% yoy increase)
EPS = 1.35 (E) based on fd= 19.5MM shares
PS: just curious how you get the same eps for Q4 as me on a much lower rev estimate of 35.8MM which implies a yoy growth of only 5%.
That is definitely bold and a bit overdone, imo, but I would be happy to be proved wrong. Some of CTRP's YoY growth was attributed to acquisitions and not just organic, so that PT growth will not be entirely consistent with other players like UTA although the PT growth is definitely the strongest in the sector outpacing air and hotel by LOTS and will greatly contribute to UTA's revenue in 2010 and beyond
I've got this for Q4 and full year 2010 as my estimates:
Q4 2010:
$35,800,000 revenue
$.48 EPS
Full Year 2010:
$145,000,000 revenue (50% YoY increase)
$1.39 EPS
Here is a (probably bold) projection of UTA's Q4 rev based on the latest CTRP's numbers. CTRP reported a yoy increase of 108% for its package tour (PT) Q4 rev. Let's assume that UTA will report a similar yoy increase of its PT rev which represents 69% of its total rev over the past 9 months. For simplicity, let's assume UTA's PT quarterly Q4 rev has grown 100% yoy and represents the same 69% of total quarterly rev. What rev can we expect for Q4'10?
Q4'09 total rev = 34.2M
Q4'09 PT rev = 23.6M = 69%
Q4'10 PT rev = 2x 23.6 = 47.2M (E)
Q4'10 total rev = 47.2/0.69 = 68.4M (E)
That also means a yoy increase of 100% of Q4 rev, resulting in a total 2010 rev of 177.5M compared to guidance of 150M.
If I use the same net margin (19%) and fd sharecount (20.37M) as last Q, I get an eps of $0.64 for Q4 and $1.50 for the year compared to about $1.40 based on company's guidance rev of 150M.
To quote UTA CFO Xie:
"The travel industry and consumer behavior are very different in China, where there is huge potential and demand for packaged tour business. This is also what separates us from our competitors and an important part of our growth strategy."
Followers
|
25
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
213
|
Created
|
03/31/10
|
Type
|
Free
|
Moderators |
Universal Travel Group, a growing travel services provider in the People's Republic of China ("PRC"), engages in hotels reservation, air-ticket booking, national and international travel and tourism packaged services, map and daily convenience services throughout the PRC via the internet and through customer representatives. It's wholly owned subsidiaries include: Shenzhen Yu Zhi Lu Aviation Service Company Ltd. (YZL) - www.cnutg.com; Universal Travel International Travel Agency Co., Ltd; Foshan Overseas International Travel Service Co. Ltd (Foshan Overseas); Xi'an Golden Net Travel Serve Service Co., Ltd. (Golden Net); Shanghai Lanbao Travel Service Co., Ltd. (Lanbao), and Chongqing Universal Travel Group E-commerce Co. Ltd, Huangshan Holiday Travel Service Co., Ltd. ("Huangshan Holiday"), Hebei Tianyuan International Travel Agency Co., Ltd. ("Tianyuan"), and Zhengzhou Yulongkang Travel Agency Co., Ltd. ("Yulongkang"), Shanxi Jinyang Travel Agency Co., Ltd. ("Shanxi Jinyang"), Kunming Business Travel Agency Co., Ltd. ("Kunming Business Travel"). Universal Travel's goal is to become the PRC's leading travel services provider in all fields of the tourism industry including the aviation, hotel booking and tour packaging segments.
Investor Relations Contact | ||
Christensen IR Kimberly Minarovich Tel: +1 212 618 1978 Kminarovich@ChristensenIR.com |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |