It is very simple to understand why XING may be one of the best ROI small cap getting out of recession. I am a value investor and not a speculator! XING book value is $5.38, just turn to profitability getting $0.17 GAAP for the first 6 months of 2010. No more diminishing returns on its book value. In fact, it will start to add to it. Non GAAP $0.32. In the Mining business its Gross Margin is close to 50% and expected to go higher in years to come. QXM its subsidiary which is full of cash around $535M is causing diminishing returns on EPS of its holding company, but it is not burning cash in part thanks to XING, and it is not expected to do so in the near future. XING purposed recently to acquire the remaining shares of QXM. In my opinion it makes sense for both shareholders because XING is offering QXM shareholders 1.9 shares for each share they own of QXM. The growth story going forward is on XING. By Q4, 2010 XING is acquiring a mine that is 3.5 bigger in revenues and at least 2 times bigger in operating profits than all the present mines they own at this time (look at 20F filing and then do the research on the company on the mining company to be incorporated by Q4). Some “fools” criticize that the company left the wireless to go to mining, and they may not have a good experience in running such business as they did wireless. Quite the opposite, XING was mainly a mining business 10 years ago. Most of the chairman family has run the mining business for many years. Indeed the top management area of expertise is in mining. Going forward XING will be more predictable and consistent in delivering EPS. If they are able to spin-off QXM as I expect, then gross margins on the consolidated statement will rise to 50%. No more dilution on EPS from QXM which is in a very difficult environment, with very low gross margins, no new model phones, and tougher competitors such as Motorola, Nokia, Apple, and China Mobile which will no longer push for their product as they did in the past. So, that channel of distribution is dead. That is why revenues fell dramatically because all they have as a distribution channels are VIVO stores and TV channel. Let's also not forget that if China currency appreciates, slowly but certainly, in the future, XING ADR will deliver even higher USD EPS. XING top management team is very qualified. Look at the last 20F to the SEC. The chairman of XING has been in the Chinese Mining/Minerals Council for quite some time. But let's take a look at XING share price potential. I will be very pessimistic. Most analysts on Wall Street have no idea how to value a company. Some even use the same model on different economic sectors, huge mistake! XING book value $5.38, 2010 EPS $0.34, Revenue Growth 5% (I am cutting big time revenue growth in order not to miss its true future valuation, usually I cut by 50% Wall Street estimates, in this case I am cutting it much more). $0.34 times ten years=$3.4+5.38=$8.78/share if I multiply 5% growth for the next ten years=$9.219/share. That is why if I was a shareholder of QXM, I would not think twice in taking the deal. First you want XING to spend the least amount of money possible on QXM acquisition in order to have as much cash as possible to acquire new mines. At first, you may think you are getting ripped off. In fact, you are not if you have a longer term investment objective. Western culture thinks that way and look where we are now with all our greedy behavior to get a quick buck. Asian culture looks longer-term. Look where China, Hong Kong, Singapore are and are becoming. A big lesson to the Western World. But, we are still not getting the lesson, it seems! But that is another debate! In case of XING, I am defining long-term 1-3 years before this stock is above $10/share. Time will tell. It can make your retirement if you play it right. I have always at least double ROI, getting out of recessions. I pick a couple stocks, truly study through SEC filings and make the move when shorts are in it at the highest level. China and Brazil offer at this stage the best risk/reward to investors. However, buy only ADRs because the US still has the best legal system even if not perfect in the world to protect investors. Finally, do not buy/sell because some Wall Street Guru told you to do so. Remember they are wrong 90% of the time! But they are a good source in order to screen for companies, and then, you must do your own analyses. These days the markets are very manipulated by market makers, so, one must be careful, to not get emotion and stick to the plan. At the end of the day, the market will reward more the value investor than any speculator. Time will tell. You will see XING will be a good example of it. I hope my comments contribute for wiser investments, so all of you can achieve your investment goals. Wishing all of you the best of luck and wisdom :)!!!!