A "REAL" VISIT TO UNIVERSAL TRAVEL GROUP (UTA)
Well, as everyone knows this stock has been hit in the last few days because some commentaries from a blogger with some shaddy or dubious intentions with this stock...actually he says that he have some shorts positions in the stock, so its obvious that he made this to make some profits and scare some investors...
This is not new we have seen a lot of attacks to the chinese stocks, some "shortie" and shaddy character begin with accusations and make some rumors in the market to tumble the shares and make a profit aout of them....just like that...open some shorts, put some blogger to say some shitty coments and thats all.... the stocks just tumble, some people loose their money for shaky hands and the others win...
We have been following UTA for quite some time, and the only thing we can say is that there are some things that i dont like like the last dilution stock issue, but saying that the company doesnt exist or that ther numbers are false, or that the company is "fiction" thats something that only one person with very bad intentions can say.....someone who is profiting for create panic in the market.
Well i have been doing the homework so i enter the UTA home page, i have to tell that i see some problems with the online booking, but i ask some friends in china to call to the toll free number, and guess what? no problems...
The web page also has a chat, where you can talk to an operator and she assist you in the process...guess what? it works perfect!
The company also announce that they have made a partnership with priceline, actually, a subsidiary from this company by the name of "agoda" and that was documented all over the media, but i prefer to write directly to the company......they respond me and confirm that they have the partnership with UTA.....so.... the company isnt fiction as this man say....and the partnership with agoda is also truth. (as you can imagine this man never call to priceline and never make a serious investigation about that)... i have the answer directly in my email if sometime is needed.
Well the history continues...
This so called "fiction" company as say by the malicious trader really exists.....today one person take the time to actually VISIT THE COMPANY for real, so he take a cab and visit the instalations in Shenzen....and guess what? he actually take some pictures and talk to REAL PEOPLE and make his own research for real....not just writting on a blog, but by calling and going there---
I ask him for permision to share his commentaries on the company and the visit and he told me is okay, so i will show you the experience of one person who actually take the time to go to visit the company...(i also attach the link to his pictures so everyone can see it):
"Hi all, So i have decided to head to UTA's calling center today.I showed up unannounced with no appointment.
As I arrived the call center, the phones kept Ringing, Ringing and Ringing. In case some of you are wondering if the company does actually exist, Well, It does.
I was kind of upset because i didnt really get to talk to anyone other then their employees about ticketing so i decided to investigate further and head to their head office. I got of the cab at this district in shenzhen call "NanShan" which means south mountain.
For those of you who are unfamiliar with Shenzhen, NanShan is the newest developing commercial and residential district in all of Shenzhen. The Cab driver confirmed by saying this area is indeed the most expensive in terms of $ per square meter. I walked into a prestige looking commercial complex builidng. Got off the elevator on the 5th floor. Then I saw 2 cuties sitting behind a reception desk.
I approached and said "Can I speak to Jenny?" I waited for about 2 mins and one of them grab the key card and showed me in. As i enter in the company, I see a board room on my left hand side. Where it was filled with employees inside. then I kept walking. 5 seconds later, Jing and Jenny walked out.
They looked at me with the "Who are you eyes" and said Do you have an appointment with us? I answered and said No but i quickly told her what my purpose there was and gave her my business card. In case ur wondering, I work for a start up hedge fund in HK.
Jenny smiled and said right this way. She showed me in her office and said We are just preparing a sales meeting in the board room for the mid-autum festival in China. She said she can give me 20 mins. I thought 2 myself, that's pretty good for showing up unannounced. I was delighted. I quickly started asking her about the short attack, the Online booking business, their growth strategy and the chinese tourism industry as a whole.
After finishing our convo, I asked if i can take some pictures of her and around her office. She said due to the negative press around UTA, it would not be wise. I said ok, I understand. I suspect she was just shy and had to keep a professional image around her employees. However, she did give me her business card and a chinese magazine call "Time Entrepreneur" Where she is the front cover of the September 2010 issuse.
At the Bottom it read: The first Chinese women to be the ceo of a NYSE listed company in 160 years. Before leaving her office, she took me into the board room. As i mentioned earlier, there were all these UTA sales rep there, so i felt a little uncomfortable with all these eyes staring at me. But it also felt good because I was walking beside their Chairwoman.
Jenny then points to a wall shelf in front of me. I looked up, it was a literally a shrine full of awards both by banks and the government. To sum it up, after todays trip to UTA's HQ, i feel even better about the investment we had made in UTA and the companies prospect in the near future. Pls find a link to my photo album below.
I had taken some photos but i couldnt get any of the HQ.
Well, as you can see the company doesnt look like fiction, they really exists, and they are angry with the recents comments attacking the company....as i say before this attacks are common in this chinese small caps, but this time in just 3 days the market value has been almost restored
Today the stock is trading at 4.5 just below before the attack but is a shame for the people who actually loose money here--
the only thing that the malicious article says that we think is for sure and is something to take a look is the online booking...thats look like need some work and explanation...but if you read carefully he says other things like dubios, fiction companym etc.....thats a way to create panic in the market... is good to always have some doubts, and we have it too, but thats not the way, that just a way to profits by mislead people....troubles and frauds are everywhere but first you have to prove it and make a good research about them, not just talk for yourself.....
we cant assure anything, this is the market and nothing is ever as you think, but here, we want to share some proofs of the company and a experience of someone who visit the company.
Well, thats my research, that was a real visit and photos from our friend Wai, and we really hope that the person who did the damage.....better not say anything...things get back to you..its karma...
the damage is done, now theres uncertainty in the market with these stock and we really hope that the company gets out of this one...
Best regards, and as always sorry for the lenaguaje issues...