What we have witnessed here this last week is big money moving the stock. Is it the company repurchasing shares or some new players? My guess is the latter and that they are buying to push this baby up close to its fair value of $15. Up $.30 a day every day is a not so subtle scramble to get shares quickly. The days of sitting back and accumulating XIN are over.
$15 a share only yields a PE of 8.4 -- far below fair value. Average PE for publicly held residential construction companies stands at a lofty 28.9. Current S&P 500 average PE is 19.24 (historically around 15). If you give XIN a very conservative PE of 12, then (on a trailing 12-month basis) it would be selling for 21.84 -- that's its minimum fair value. My guess is that the Goldman Sachs guy on the last conference call will initiate coverage with a "buy" in the not-too-distant future. So far, only Goldman Sachs insiders and premium clients have gotten the word. After it's released to the public, everyone will want a piece of XIN.