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Xinyuan Real Estate Co., Ltd. Message Board

  • jeffreybul23 jeffreybul23 Aug 11, 2011 10:05 PM Flag

    Buy back explained for the novice

    Some people on this board seem to have no clue what they are talking about, when it comes to stock buy backs. It is sad, because knowledge is power.

    XIN's book value right now is $7.35 a share. If they bought back 5% of their stock, their book value would go up to $7.71 a share, or appreciation of .36 per share. There are 5% fewer shares, so the remaining share are worth more. In the 5% example .36 more.

    If XIN gives us a dividend of .10, we get it once, and there is no guarantee we would continue to get a dividend. It is temporary, because is reflects a one time event.

    A buy back is long term, a dividend is a one time event that we hope happens again. Your local community college has great 101 type classes for investing. Won't hurt to take one..... or two.......

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XIN
4.52-0.12(-2.59%)Apr 23 4:06 PMEDT

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