- The stock price of UTime (NASDAQ: UTME) increased by 110.69% today. These are some details about the company you should know about.
The stock price of UTime (NASDAQ: UTME) – a China-based mobile device manufacturing company committed to providing cost-effective products and solutions to consumers globally and helping low-income individuals from established and emerging markets – increased by 110.69% today as it went from a previous close of $39 to $82.17 on its second day of trading. This is a continuation in momentum from earlier this week as the stock price increased over 2,000% since going public yesterday (IPO price of $4). These are some details about the company you should know about.
UTime had sold 3.75 million shares in the IPO to raise $15 million. Now the company’s market value is $679.36 million.
Due to the low float involved in the IPO, there was a surge in discussion about the company shares on stock trading forums including StockTwits, Reddit, Discord, and Twitter. Companies that have a low float tend to have favorable environments for aggressive day traders. And this is not the first time that these social media platforms were used to coordinate a stock price surge on a China-based company with a low float. Periodically, there have been surges in China-based online education companies through similar coordination.
Something similar happened with China-based Elite Education Group International (NASDAQ: EEIQ) – a provider of comprehensive and one-stop education solutions for Chinese university students interested in study abroad programs in the US and other countries. EEIQ went public at $8 per unit and 750,000 units. EEIQ climbed 340% shortly after its IPO.
More Details About UTime
UTime currently covers two product categories, including 13 types of smartphones and 11 types of feature phones. And the company believes its products are comparable in quality to larger brands and are also price competitive. And UTime believes it fits the needs of low-to-mid income groups of many developing countries and they believe they avoid major competition from large international brands.
The company intends to achieve its mission through successful execution of the key elements of the company’s growth strategy, which include:
1.) Optimize the structure of OEM/ODM customers and orders – The company accumulated business resources and experience in both domestic and overseas OEM/ODM markets for the last decade. Plus the company is going to seek to utilize its first mover advantage in changing markets to become an international enterprise through continuous innovation.
2.) Develop the brand and enhance brand recognition – The company established and it is going to delivering superior user experiences to customers in emerging markets like India, Southeast Asia and Africa. And the company plans to seek to offer an enhanced shopping experience by effectively managing its distribution network and upgrading its franchised stores. The company’s first step is to open (direct-sell) retail stores in key and high-traffic locations in India and to establish a comprehensive sales network with distributors.
3.) Expand (local) sales network overseas – The company is planning to further expand its sales network in India and establish a representative office in the United States. Plus the company is planning to enter the African and South American markets. And it will provide training and support its sales managers across the major provinces of India to expand the service portfolio and implement up to 400 after-sales outlets to improve the user experience.
4.) Dual-brand pricing strategy – The company plans to restructure its existing product pipeline by developing the “Do” and “UTime” brands at the same time, but targeted to different segments. And through the “Do” brand, the company targets customers who are price-sensitive and cost-effective. And at the same time, through the “UTime” brand, the company is targeting the newly emerging quasi-middle-class customer base in both established and emerging market countries.
5.) Expand and diversify the product portfolio – The company is planning to expand and diversify its product portfolio to meet the fast-changing market. And more types of consumer electronics will be added and offered to the company’s customers. Plus the company is going to develop a range of distinctive electronic products, including triple-proof mobile phones that are water-proof, dust-proof, and puncture-, shock-, pressure- and impact-proof, portable Bluetooth speakers, and sunglasses with built-in speakers, among others.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.