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JQW JQW

2.70
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
JQW LSE:JQW London Ordinary Share JE00BGCZHC53 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 2.70 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

JQW Share Discussion Threads

Showing 8926 to 8949 of 9200 messages
Chat Pages: 368  367  366  365  364  363  362  361  360  359  358  357  Older
DateSubjectAuthorDiscuss
06/9/2015
21:31
The thing about Shareprophets is that it employs writers who can post what they like (TW is big on freedom of speech)

Zak Mir is a chartist who looks purely at the technicals. He is calling 12.875p immediate target and 15p in a few weeks. Oblivious to the fact that JQW will publish their results within 3 weeks which will send the share price sharply up or down!

TW himself, I'm sure still considers this a PoS and a fraud who's shares should be suspended immediately.

someuwin
06/9/2015
21:21
XWP - ok, point taken. E-commerce and financial services are on the horizon. And if you're right about the big jump in paying users that's good news.
Should be an interesting week.

rupe1958
06/9/2015
21:01
Welcome to the real world where publications write rubbish to line their own
pockers via a u-turn.

Is this really true with share price stig ?

21trader
06/9/2015
17:38
Rupe, thanks for keeping everyone so grounded.

Regarding financial services this is what JQW stated in their last Annual Report dated 30th April 2015 -

"In this respect, JQW has been working with CreditEase Group, a financial institution which provides wealth management, credit management, microfinance investment, and microcredit loan origination and services in China, to provide a platform and a direct link to a financial institution that provides SMEs with microloan services. This service commenced in the fourth quarter of 2014. Through the cooperation arrangement, CreditEase Group will provide microloan financing services to JQW’s members with a lower interest rate provided that they can fulfil certain criteria"

JQW does not itself lend its own money of course, but it has a partnership and a platform that enables financial services to be offered to its customers.

As to e commerce they said this -

"In the second half of 2015, JQW intends to launch its Chinese-based e-commerce function on the existing Chinese B2B platform. This Chinese transaction platform is mainly targeting the domestic market. The new e-commerce platform will significantly improve functionality that will allow purchasers to place orders and make payments through the platform, using carefully selected partner firms with which JQW has established relations"

So they aren't there yet, but may not be so far off.

Commission on sales -

"Going forward, it is the intention of the Group to create a sales commission-based model. The Board will provide further updates as this service is being launched in H2 2015."

It would of course be quite risky to start to move to a commission based model from the fee based one at present, Alibaba's great selling point is that it does not charge commission. Notwithstanding what JQW has said, it may indeed be several years away, depending on how the market develops, but it isn't quite pie in the sky.

Anyway no doubt all will be revealed in due course.

xenawarriorprincess
06/9/2015
16:59
Xwp - i'm just trying to make your glasses a little bit less rose-tinted. I'm also anxious you shouldn't mislead investors into thinking that JQW is lower risk than it is. I remember you doing that with a company called Cardinal Resources a few years ago. You got very excited about that company, and wrote a lot of very elegant and admired posts about it. Shareholders ended up losing everything when it went broke.

There's a couple of things in your last post that I'd like to correct. First, JQW is not currently offering financial services - ie loans, insurance etc. They have no licence to do this. I agree that JQWcould sell financial products in the future but it's a long way off. As for commission on sales, that is just pie in the sky at the moment. JQW is a kind of electronic Yellow Pages. It does not offer e-commerce.

Second, it's important not to dismiss the possibility of delisting. The Chairman and his family own over 75% here. That gives them a lot of power under AIM rules.

Your thoughts about OMPs selling shares and mystery buyers building positions seem to me pure fantasy. Some of those 50k buys have been my own.

It will be interesting to see what happens this week.

rupe1958
06/9/2015
14:21
Zak Mir, yes he of Share Prophets has this afternoon done a podcast featuring JQW under the headline "Zak Mir's Bulletin Board Heroes"!



He says JQW has been "surprisingly strong" over the last week, with Friday well up above the 50DMA of 8.23p.

He expects an immediate rally to an initial target of 12.87p, with a target of 15p at the top end of the trading channel within a few weeks. Only a fall back below the 50DMA would be outright negative.

Zak would only have thought that JQW was "surprisingly strong" over the last week if he had taken a trip to the Moon and missed the Motley Fool tipping it as a buy.

Both share price and MF have been busy slagging this off for months, so it is good to see that they are both on message, even though Zac appears totally unaware of the existence of MF.

Zak has also quietly nudged his target up, last weekend it was 13.38p, now we're up to 15p.

No doubt these repeated buy tips (3 in a week) are just to make sure that the dummies who follow share price and MF really have got the message, and aren't still following the deramping line which has held sway for the last 12 months or so.

xenawarriorprincess
06/9/2015
09:47
Rupe, I would agree that JQW is in a revenue and profits pause, but I don't believe that they have gone ex growth.

JQW has been expanding fast, so perhaps it is only to be expected that profits would come under pressure. I have posted before to say that I believe that they have recently sacrificed profits for growth, and the same may be true, recently, of revenues as the network of agencies expands.

However within the interims it will be interesting to see how many fee paying members they have. At December 2014 it was 241,000. This website

target='window'>https://translate.google.co.uk/translate?hl=en&sl=zh-CN&u=



suggests that the figure may be now 350,000.

If that figure is correct then JQW has certainly not gone ex growth, but has sacrificed revenue and profits for growth.

As to the step change in revenue, this may be some way off, but may still be possible within several years.

Banking in China is dominated by state institutions, however the most advanced form of banking they offer is telephone banking. The main banking system in China is effectively 25 years out of date. JQW is already offering financial services, and e payments are due to be offered this year. This could be a great untapped opportunity. Alipay, of course dominates in China in terms of e payments, but I'm sure there will be room for others offering e payments and mobile payments.

JQW has also said it intends to move eventually to a commission based model for payments, that is really the big opportunity.

Anyway I certainly wouldn't argue against JQW being a value play, that much is obvious. But it doesn't only offer value.

The risk of delisting - I also would say it is small.

At last years 2014 AGM, when the share price was circa 80p, there were resolutions passed which would enable to company to raise cash and double the number of shares in issue, 65% to existing shareholders, 35% for cash. I suspect a takeover was being line up which fell through due to the rapidly declining share price.

At this years AGM the number of shares allowed to be issued was 20% of the issued share capital, 10% existing shareholders, 10% for cash.

So I don't see that the company is particularly interested in retaining the shares not in public hands above 75%, although it happens to be just above 75% at present.

As for Alibaba, I think they have much larger fish to fry, building their O2O operation and international expansion. They could choose to be a threat, but I think their present focus is elsewhere, expanding into India and the US. Even they can only do so much.

But the Alibaba philosophy is also interesting, Jack Ma says that customers come first, followed by employees, then shareholders.

Alibaba has also recently said that investors shouldn't be too worried by declines in share price, but shareholders should ask themselves, "will the company still exist in 100 years?". If JQW is following a similar philosophy, then it could explain what may appear to be a "relaxed" approach to the recent share price decline. Perhaps investors simply need to adjust to a more long term view, instead of focussing on the next set of results.



The 2.2m shares sold by OMP's, well of course that is a guesstimate, taking account of the big, 100k+, sells over the last 3 months. There haven't actually been that many, but the OMP's have been regular sellers since August 2014, we know that, and I see no reason why their behaviour should have suddenly changed in the last 3 months.

Indeed the share price until the last week or so suggests that their behaviour hasn't changed, although there has also been a regular 50K buyer picking up shares around 8p-10p a few times each week for the last several months.

No doubt all will be revealed by the end of this month - but then again maybe I'm also guilty of short term focus.

xenawarriorprincess
05/9/2015
22:49
Xwp - thanks for the interesting post.
Personally I think the MF piece is reasonably balanced. They are surely correct to say that growth has flattened out. The trading statement at the AGM suggested this. I'm a big fan of JQW (and a shareholder) but I don't think they are near the 'step change in revenue' you imagine. Financial services and e-commerce are both projects at this point, but some way from happening. We are an online advertising billboard for small Chinese companies. It's a great business but the big growth phase appears to be over for now. But as MF says, it's better to see JQW as a value play.

Why is it such amazing value? Partly because there are risks here. In my opinion there are 2 risks with JQW that investors should be aware of:
1 - that the controlling shareholder with 75% of the equity could decide to de-list, under Aim rule 41. This would leave minority shareholders with an untradeable asset. Personally I think this is very unlikely to happen. But it's important to be aware of the risk.
2 - that Alibaba, which is many many times bigger than JQW, decides to compete more aggressively in our market of small SMEs, and drives down our advertising rates.

Personally I'm optimistic that JQW will not de-list, that it will hold onto its very lucrative niche, and might even get taken over by a competitor like youboy.com.

I'm interested to know how you estimate that the OMPs have sold 2.2 million shares in the last 3 months. Isn't that just a pure guess? There is no way of knowing who has been selling shares over the last 3 months.

Good luck to all JQW followers.

rupe1958
05/9/2015
19:32
I thought I'd paste the whole of the 4th September 2015 Motley Fool article relating to JQW, simply because the last one they did on JQW ended up being deleted from the Motley Fool website in its entirety.

Whilst the article is generally positive (and certainly better that the hatchet job last time, which had to be quickly pulled as the author basically got it all wrong) it is cautious on a number of points.

They're right about the rapidly expanding market for B2B commerce, but then go on to say -

"this explosive growth is attracting a wave of competitors from both inside and outside the country. As a result, established companies like JQW are on the defensive and need to come up with new ways to retain customers."

There are certainly B2B competitors inside China, principally Alibaba and Youboy, but competition from outside - I see no evidence of that. Indeed over the last 10 years Alibaba has seen off all foreign B2B and B2C competition within China.

This website

target='window'>https://translate.google.co.uk/translate?hl=en&sl=zh-CN&u=

clearly indicates that JQW is 3rd in B2B market rankings, close behind No 2 Youboy, with Alibaba way ahead, but the rest of the competitors are trailing way behind, number 4 has less than 30% of the number of JQW's users. Indeed outside the top 20, all competitors have less than 5% of the number of JQW's users, and many tend to be in small niche markets.

I also think the author is making too much of the "changing business model". Certainly JQW is rapidly expanding the number of agencies it has and this has the effect of reducing the revenue it receives per customer, but it also increases the speed at which JQW can expand across China and enables that expansion to take place more cheaply.

I see this as continuing development in a fast changing market space rather than changing its business model.

To also suggest that JQW has gone ex growth is going a bit far. Indeed as the company expects to make similar profits to last year for the 2015 full year presumably they are expecting growth in profits to return in the 2nd half - that was the position at 30th June and presumably as there was no alteration to guidance that is still the case.

Innovations due in 2015 such as the e commerce payment button on the website, the commission based payments model, in addition to the rural and urban finance offerings, and the mobile applications already introduced could provide a rapid step chance increase in revenues and profits.

That is not to say that China does not at present face significant economic challenges, and these may reflect on JQW.

However given JQW's cash pile and the fragmented nature of the market it is likely that it is JQW's smaller competitors which will find themselves under greater pressure than JQW and they could be taken out in moves to consolidate the market from which JQW could end up an ultimate beneficiary.

As for the timing of MF and share price buy tips this week after months of bashing, I don't believe their 180 degree U turn at this point in time is mere coincidence.

JQW announced around 3 months ago months ago that the OMP's had around 4.8M shares remaining. I reckon around 2.2M have gone over that time leaving about 2.6M left. Obviously very rough figures, but it wouldn't take a genius to realize that with a bit of heavy trading, if no new sellers appear, then that 2.6M could go quite quickly.

Decent interims, and a sudden shortage of shares after almost a year of selling, together with a favourable press could make this a one way bet.

Call me cynical if you must but I'm sure such a scenario has not escaped MF and share price

They know the interims will be decent (JQW has said so), they can work out the selling is likely coming to an end, and they themselves provide the favourable press coverage after 12 months of incessant assault.

And surprise, surprise up JQW goes.






"JQW (LSE: JQW) is one of those companies you either love or hate. The company provides a B2B e-commerce platform focused on connecting Chinese buyers with Chinese sellers, a market that has exploded in size during the past few years.

Indeed, data released last March from iResearch found that China's eCommerce sector expanded by more than 20% in 2014, with B2B sales the largest contributor. What's more, analysts predict that China's $2tn eCommerce market is set to double in size over the next three years. Other figures suggest that Chinese B2B e-commerce and B2B electronic payments will amount to $1.4trn and $140bn respectively, in 2015.

However, this explosive growth is attracting a wave of competitors from both inside and outside the country. As a result, established companies like JQW are on the defensive and need to come up with new ways to retain customers.

JQW itself is in the middle of a transition. The company is changing its business model, contracting out an increasing amount of business through external agents. Unfortunately, this change is hitting margins. For example, while revenue increased by 12% during the first four months of 2015, JQW's gross margin contracted as of commissions paid to agents ate away at profitability. With margins coming under pressure, JQW's net profit contracted by 10% during the first four months of the year.

Still, JQW's management believes that the company's profit for the full year should be "of a similar magnitude to last year."

Sudden halt

It's disappointing that JQW's growth has come to an abrupt halt this year, but while the company is no longer a growth play, it ticks all the boxes as a value play.

According to the figures supplied by the enterprise, at year end 2015 JQW had around RMB 394.7m, roughly £40.8m at the end of December last year. This cash balance was reported after dividend payments totalling RMB 114.4m during the year.

This indicates that, at present levels, JQW is trading for less than the value of cash on its balance sheet. At time of writing, the company's market cap. is a tiny £20.2m. Furthermore, based on JQW's full-year 2014 results, the company is trading at a historic P/E of only 1.3.

Clearly, judging by JQW's current valuation, the market believes that the company doesn't have a future. But the company is profitable and trading below the value of the cash on its balance sheet. For deep value investors, JQW could be a top pick.

Trust issues

However, there's one issue that's overhanging JQW.

Certain Chinese companies have gained a reputation over the past few decades for falsifying accounts, misleading investors and taking advantage of poor corporate control by government. That said, there's currently no indication or proof that JQW is misleading investors, but you can never be too careful.

Even at the best of times, deep value plays like JQW aren't for the faint of heart -- you can often end up losing all of your investment. But for those willing to take the plunge the potential reward can sometimes be enormous."

xenawarriorprincess
05/9/2015
12:30
Tipped by Motley Fool-crumbs that's a turnaround,but that's good news and I think more tips to come.
loobrush
04/9/2015
20:34
Now picked up by Yahoo Finance UK!
xenawarriorprincess
04/9/2015
20:22
view RK's profile! - RK filtered!!!
43rick
04/9/2015
19:47
I've been forwarded a report that a RAT infestation has broken out hereabouts.

Now, I kill rodents for a living, and I love my job.

Those who defend or love them, well, they just count as collateral damage, something to test ammunition out on, etc.

Someone point me in the direction of the plague, and I'll get on the job right away.

ratkiller
04/9/2015
19:07
Be interesting if JSI also gets a buy recommendation- half year figures due end Sept and they have a 28% plus of profit dividend policy.
dgarvey
04/9/2015
18:41
The Fool article is now being retweeted multiple times, so bearing in mind the overall market I think there is a good chance of further moves upwards early next week.

The bounce in volume is also welcome, for reasons that long termers here will appreciate.

Hopefully a nice steady recovery is on the cards, leading up to 23rd September.

xenawarriorprincess
04/9/2015
17:45
Interesting.

I think that just shows that the real scams are ShareProphets and TMF. It seems they simply use their sites to talk their books. If I remember correctly TMF were forced to correct an article because it made a schoolboy accounting error when commenting on the balance sheet. It shows how many criminals there are on these markets and I say again, never ever take any notice of these fools.

Amazing how many so called experienced investors came on here and swore blind TMF were correct when a simple bit of research revealed the article was innaccurate.

I am still cautious on this company but I suspect this one might move up sharply now.

loverat
04/9/2015
17:29
Motley Fool has today come out with a JQW buy recommendation!

Earlier this year both Share Prophets and Motley Fool were saying that this was an outright scam.

Now this week they have both come out with buy recommendations.

They bash the share price down, nearly squeezing the life out of the company, and then they both change tack in the same week, and start ramping it up. No doubt all their "pals" are by now fully loaded.

Any fraudsters sure aren't located 8,000 miles from LSE HQ, of that I'm certain.

xenawarriorprincess
04/9/2015
16:59
still woefully undervalued
koolade
04/9/2015
14:56
Loo - you could say the same about RBS, Barclays, HSBC etc as they have all committed fraud and deception on a grand scale but it doesn't mean the fundamental company isn't sound. Shame they have to pay all those fines out of shareholder funds rather than bonuses. And you think the Chinese are bent?
dgarvey
04/9/2015
14:01
Shame, glad we have the AIM.
gerryjames
04/9/2015
12:26
Because its chinese and some chinese companies have been dodgy
loobrush
04/9/2015
11:48
Loo, 'If you believ the accounts, if all is above baord'.. two references.. do you? Genuine question. What reasons do you think people have for questioining the legitimacy?
sif12
04/9/2015
10:26
molatovkid-go polish yourself
loobrush
04/9/2015
10:06
Not necessarily leaky, just traders playing the odds. With a small share base and limited free stock, relatively small trading volume can move JQW significantly.
dgarvey
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