Intrigued by both XIN and CHLN, but doesn't CHLN show faster growth, earnings and revs?
I'm only going by the yahoo data, and though both seem undervalued based on share price to book value, especially XIN, CHLN appears to have much stronger quarterly yoy revenue and earnings growth. Is this correct? And
"ghost city" articles of late, isn't CHLN's focus on tier 1 cities versus XIN's focus on tier 2 cities a plus for CHLN?
Both are spec plays, and maybe getting both would be a smart play, but if someone is looking to just choose one, wouldn't the CHLN growth play be the better one, the one with more potential?
The low average volume of CHLN does concern me, but that has picked up the last week or two substantially, so maybe volume will continue to rise?
XIN has more profit and has given out dividend - little or no debt. CHLN has much more debt and has not every issue out a dividend. The dividend payment makes XIN worth a lot more to the investment community then CHLN who earnings are all over the board. CHLN until recently, was fear they might have cash problems because of their lack of cash.
I own both and I purchase more of CHLN but I purchase it back in 2007 at around $4.25 so I just averaging down yesterday again! Just not a lot of American buyers for Chinese stocks currently. Just have to wait for the worldwide economy to recover and for the Chinese CPA practice to be validated to international standards before Chinese stocks find new American buyers.
CHLN is about to have it's run, XIN and HGSH already had theirs. Looking at the charts, CHLN is about to have a run similar to other Chinese housing companies. Look for a rise 50-100% or more in the next few months.
since no one is providing more input, I'll add some correction to my first post. According to Yahoo data XIN focuses on tier 2 cities, so I was correct about that, but CHLN focuses on tier 2 and 3 cities, not tier 1 like I thought I had read somewhere. Also, in their last reports, XIN notes pre-sells for 4 new projects begin in the second half of 2013, while CHLN notes pre-sells for just 1 new project begins in the 4th quarter 2013, which makes me wonder if XIN's strength in share price is anticipating stronger near term future growth. I just don't know. Also, I see reference to XIN both selling and renting properties, while CHLN only selling properties, so maybe XIN has a more predictable cashflow? I don't know this either. I would welcome comparative input from others...
I'm in both stocks and have been for 2-3 years. I think they both have great potential, and I honestly can't say which is the better investment. I do like the fact that XIN uses a Big-4 audit firm (Ernst & Young), which provides some additional comfort that their results are not tainted by sloppy accounting or outright fraud, and I also like the XIN 3% cash dividend yield. Plus XIN is much more heavily traded.
IMO, CHLN may have more potential but it also has more risk. But both are excellent opportunities right now to make some great returns. The risk/reward ratio heavily favors staying in both for the long-term.