I have been researching this company for a while. Its numbers look very attractive as a value play and long term investment. Before I jump in, I would like to do my DD to find any possible negatives hidden behind these apparently great numbers. I listed some below and welcome anyone to add/comment:
1. General concerns about the integrity of financial reporting of any Chinese companies;
2. Concern for Chinese real estate "bubble"
3. Negative media report. I found some reports on XIN's poor quality in some projects in the past a few years and concerns about project delay in hope to wait for higher house price. Does anyone know more about XIN's reputation as a builder in China? To view the following link, you need to copy, past and replace * with /
You should intiate a small position. Maybe 400 shares. The stock has more than doubled from the low and a pullback is always possible. If the stock goes down be prepared to buy more. I have 2400 shares and I am holding for now.
Maybe they have a bad rap for buildings in China, but I visited their US buildings in Irvine and they were very nice. I'm still short though, I don't care about fundamentals as much as I care about where the price is likely headed.