"...as I have heard that wealthy can influence just about everything in China..."
Really? Unbelievable, the complete opposite of US then.
Cash per share is strong, debt per equity is manageable, and yearly revenue justifies a higher valuation. Quarter to quarter unpredictability is acceptable given projects in development and China real estate regulatory hurdles (not an expert here, just a feeling from reading articles on China housing). Upward potential far outweighs downward pressure.
If you are truly in it for the long haul, you probably will be fine, but the market is not going to reward it for 3 months, in my opinion.
Yes, it's a bad quarterly, but I would stay invested on the figures, (which should mean no more than a 20% haircut) Can't believe I was too chicken to buy more at 1.82 but I was. Regardless, here's my two cents-
1- CHLN is legit (has been for many years, unlike some other small cap China cos.)
2- CHLN performed great for 4 quarters in a row...& we investors thought they would pull out a XIN or EJ type earnings report this quarter to push us all up to 3.5 or even 4.5 bucks (..".quel dommage;) I have used EJ to balance this micro-cap to good effect but still strong on both cos.
3- My investment here is 10% below neutral now (& many other investors are hit harder). But, like all real estate cos. both small & large ((Pulte or DHI ) real estate is esp. cyclical. If you can buy this company under $2 it's a stone gift. I'm holding for 6 mod out. My investment here is IRA money for growth...not income. Given their conference call, the govt acceptance of CHLN's new real estate project to go on sale within months, and the ever growing Chinese population, I cannot see how this company doesn't recover quickly from today's quarterly beating.
Sentiment: Strong Buy
I believe fair value...if you can even call it that; is about $1.30 to $1.50 range. You have to go way back and start from ground zero.
Obviously they have no clue, it doesn't make any sense whatsoever with the interest rates so low, you would think that they would be buying middle classed housings and with growth "supposedly" increasing by as much as 9% in October Alone??
You almost have to be flat out DUMB to lose money in that market over there....OR Corrupt.
Dumb and Corrupt=Total Disaster. That's what we have here.
Cmon, something is up and something is Fishy here. I'm not sure what happened; if some type of corruption is going on--as I have heard that wealthy can influence just about everything in China, but this was worse than bad. I haven't read anything this bad for quite some time in a sector that is growing like a run away weed.
It is obvious that someone knew these results as the price action prior to release...someone(s) just robbed a ton of money.
They will essentially go from having a PE of around 4 to a PE of around 100 and next quarter is projected to be a slight loss also?
Things are not going to get better here fundamentally for quite a while. It is easy to lose trust in investing in any Chinese company after reading this #$%$.
This must be one of their properties that hasn't done well. Use to be world headquarters and now a take out place.
Win some lose some. I also owned IPCI, hit huge yesterday. It's a wash. Life is full of disappointments, can't understand this earnings report at all.
Small to big remember!! Free to see the Charts, Good start for today!! Expecting more volume to come!!
Dont miss it!! $PLPL and $IOGA
Sentiment: Strong Buy
Awful report. I am in the sector and have never seen a company with such erratic results quarter to quarter. It appears they literally have no clue what they will do quarter to quarter which does not give an invetsor much confidence. I have about had it with these guys
Not overly encouraging and will take about two quarters to get back to "normal" growth. Sounds like the buyers in China were buying low units or high units and not much in the middle.