Tongxin International - TXIC

Discussion in 'Stocks' started by Hook N. Sinker, Sep 18, 2009.

  1. Tongxin International, Ltd. (stock symbol TXIC)

    I notice TXIC appearing on the 52 week high list this morning. TXIC price values are at or near historic high values and trading volume increasing. Recent price values are about $ 10 / share. $ 10 / share is an important price level for me because I remember William J. O'Neil saying on TV that many funds can not buy stocks trading at less than $ 10 / share.

    There is a company web site: I read a company description at "TXIC designs engineered vehicle body structures ("EVBS"), designs and fabricates the dies used in the manufacturing process, and stamps panels, assembles and completely finishes EVBS." profile reports: "designs, develops, manufactures, sells, and services engineered vehicle body structures (EVBS) for light, medium, and heavy duty trucks, and light vehicles in the People's Republic of China." "company organized under the laws of the State of Delaware on June 21, 2005 and was formed with the purpose of effecting a merger, capital stock exchange, equity acquisition or other similar business combination with one or more operating businesses within the global automotive component industry that have their primary operating facilities located in China, India or the Association of South Eastern Asian Nations ("ASEAN")."

    I interpret these descriptions to mean the company manufactures automobile, truck parts and tools in Asia, and sells to USA automobile companies.

    My interpretation of the most recent four quarters of balance sheets and income statements is: assets, liabilities, equity about unchanged, net income increasing, revenue zero.
    I notice Tongxin International, Ltd. reporting no revenue, total other income/expenses net of 5,401,000 and pays no tax (income tax expense (125,000)). How can Tongxin International, Ltd. experience income and not pay income tax?

    I am writing to a Tongxin International, Ltd. investor contact representative for explanation.

    I remember reading that USA automobile companies do business with Asian companies. Perhaps this is a growing activity and TXIC might represent one way for traders to participate in the growth.

    I do not own the stock nor do I intend to.

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  2. No reply from any Tongxin International, Ltd. representative.