Yes, I learned about 'opportunity cost' in my MBA program.... as well as grade school I'm sure. I'd love to hear what Zhang's opportunity cost is. Are you suggesting that he would be selling XIN if the price was right?
He probably doesn't care whether this is $4 $5 $6, or $7, because he knows this is worth well over $10 anyway, and even if he could sell a large chunk (without flooding the market) at double today's prices he probably wouldn't (hasn't yet). Therefore, I would most certainly love to hear what Zhang's opportunity cost is, and why he should care whether shares are $4 or $8 if he has no intention of selling at either price. I would love to hear what would happen if he unloaded his shares on the market right now and what the price would be after, given that you fully understand his opportunity.
TPG has long term converts, and the lower the price is now, the higher they will likely be by expiration date due to cheap buybacks. I would love to hear what TPG's opportunity cost is on the illiquid bonds that they are getting 5% a year on regardless of what the share price is doing right now. Who are you suggestiing they would or could sell those bonds to, and at what price?
I really can't wait to see your analysis of the opportunity costs of these two entities because from what you say, it sounds like this board could use some enlightening. Thank you sir.
Why don't you sell your shares at 3.81 then and buy back at a discount if you're so sure it will go down?
Got to agree with Star here. THey are holding for years... Why should they care what it does day to day? The lower the better because they can buy back shares at cheaper prices... although more volume would help with that.....
as a shareholder I expect xinyuan to be efficient mangers and maximize profits and expand the company all the time not some time in the future that's what you call a pipe dream and since tpg got involved xinyuan has suffered a 50% drop in its stock price that's some strategy
I am saying Zhang has around 30% of XIN and TPG has 8%-20% of XIN and they don't care what I am cool with or what you are "cool" with.... they have their strategy and and the power to go with their strategies. You either understand that with this investment or you shouldn't be in equities.
I suspect both Zhang and TPG are long term investors and don't care what the share price is day to day.....or what the peanut gallery on Yahoo msg boards thinks or cries about.
That's how long it will take for XIN to be valued in concordance with other real estate stocks. That's provided they are still alive and the Chinese economy has bottomed out by then.
Nice try but I don't know if you are aware I am a shareholder in xinyuan I will not sell and go away I want these inferior people to do there damn job ok sheep boy
If the possibility that margins don't improve in the future displeases you....you should sell and move on to a company where margins will improve in the future.
If you don't like the management of the company....you should sell and move on to a company with management that you like and fell is competent. The 35% owner of XIN will keep the management that pleases him and he doesn't care what you think as a 0.1% owner.
If you don't understand that XIN's margins will vary over the life-cycle of a project or from year to year...you should get a mutual fund.
Why does everyone keep worrying about the book value? That is what it takes to make money, hence the word assets. What I, as a shareholder of xinyuan real estate want to know is why they keep generating more and more assets and earning less money? Isn't that the sign of incompetent mangers ? They say they will make 30% increase on top line lol that's a given based on inventory. However, they say its to early to know bottom line because its all a gamble on margins based on lol next years real estate environment. If margins don't improve all you will have is more effort and about the same bottom line as now. I would love to hear thoughts on this
You guys are not correct. If you are looking at diluted share count then you are assuming dilution, in which case the convertibles that TPG bought would no longer be a liability, and would need to be reduced. Book value at this point is probably a little over $12 a share. company calculated it for us at the last CC and it was $11.90 or something.
The Yahoo "key statistics" page has NBV at $12.10 per share. Not unusual for a property developer stock to sell at less than book value, but Xin is selling for a huge discount. That's just the way it is with small cap Chinese companies these days.