Business Insider article addresses 60 Minutes Nonsense
There's a new article by Mamta Badkar, 'Everyone's Got the Chinese 'Ghost Towns' Story All Wrong' that talks about how the "ghost town" thing is overblown and how 60 Minutes got some key facts wrong. The article is mostly referencing another recent article by Bank of America's Ting Lu titled 'Demystifying China's "Ghost Towns"'.
CNBC had a analyst on the next day. he all but said shame on 60 minutes. ( Steve Roach) 60 minutes did not address the issues but one persons view that was 100% invested in comercial real estate and ghost towns. The social projects, urbanization, outlook, Government has control of housing as in the last 20 years and they profit of its healthy condition. XIN is a strong buy at these levels, being a historically profitable company and having $700 million in future business contracts. The sector average price target for an American company would be between $25 and $40, -----XIN's P/E was 2.64 and over 11 book-From a P/E standpoint it should be trading around $10-$17. From a book value standpoint it is between $7 to $8.
Inside Fidelity there are 4 reports . Three of them (Eva Dimensions, Columbine Capital, Ativo Research) all say either buy or strong buy; the fourth, from Thomson Reuters, is more of a generic overview without explicit recommendation, but still shows that XIN compares extremely favorably by the overwhelming majority of metrics, either relative to its peers or in absolute terms
Xinyuan has expanded its
network to cover a total population of over 64.7 million people in eight selected
cities, consisting Beijing, Hefei, Jinan, Kunshan, Suzhou, Zhengzhou, Xuzhou
and Chengdu The company also
offers property management and other real estate
related services ----Fidelitys' EVA Dimention report stood out- XIN's market score is at the 98th percentile when rated against all Russell 3000 companies, as is
explained in the section below. By comparison, the median firm in XIN's industry rates a market score of
4, which indicates the market is paying a hefty premium over past performance trends for industry firms.
With the sector bias removed, XIN's market score thus converts to its official in-industry PRVit score of
100. Very strong cant miss buy! XIN's outstanding performance (96th percentile vs.
Russell 3000 companies), At ($4.87 share price) makes for a PRVit score of 98th
percentile vs. the market. XIN scores at the top in valuation, wealth, trend , profitability.... PRVit Measures Overview: XIN rates above all stocks at 100% strong buy--- A company’s performance is “strong” when its Return on Capital (ROC) exceeds its Cost of Capital (COC), and it is increasing its EVA
-- the profit earned over the full COC, which includes earning a minimum return on equity. Many firms that look profitable by EBITDA or EPS aren’t when judged by
EVA. EVA repairs other distortions: restructuring charges are added back, research is written off over time, leased assets are treated as if owned, and tax gyrations
are smoothed. The result: EVA is a sounder measure of economic profit and more reliable indicator of added market value than reported earnings.
Risk is indicated by stock price and return volatility and reliance on debt financing, offset by “free” cash generation, which betokens liquidity and staying power.
Valuation is measured by Market Value Added (MVA) – the spread between a firm’s overall market value and its balance sheet capital – which is also the amount
of wealth a company has created or destroyed. MVA and EVA should be linked. A firm’s MVA should equal its projected EVA profit, discounted to present value. If a
firm just breaks even on EVA, its market value should nearly match its book capital. Only profitable, EVA expanding firms should trade for MVA premiums. Buy/Sell
opportunities arise when MVAs are mis-aligned with the record for earning and increasing EVA.. it has no peers close.
They beat rev and income guidance buy 80% and doubled the returns on their RENO holdings by 100%. This company has mastered capitalism. Record sales last quarter were great and most their properties are already sold going into the next quarter. The out look is rev to reach 813 million with net income coming in at 90-100 million. I think its funny some shorts think the worst is going to happen. The fact is the blow up has already been priced into this stock.