I don't have any doubt that XIN was making over the last couple of years.
In theory, XIN's tangable asset is cash, almost no building/machine(they have sub contract to do all the constriction), so If I were the CEO, I would just use cash flow to every shares when it was traded below its book. Forget about land acquision, after all, you buy land and build the house to make money, but you can get 100% right away for buying your own stocks.
SO why the CEO sold stocks for half of the tangable value is beyond my understanding., it's like give away your own money.
So the big question: what is the real tangable value for XIN? Only CEO knows.
I was speaking of the XIN $10M and $20M buybacks which have a basis of somewhere between $3 and $4/share. We will not know for sure if the $20M buyback is complete for about a month..and what the final price is at which they were bought.. These were sold , IMHO, to TPG at $5.48 recently. When I spoke of the CEO buying and selling....I am speaking of him as the CEO of XIN which has the buyback programs.
Some of the shares for the $75.8M convertible, IMHO, will be bought back below the conversion price of $6/share. IMHO, some have already been bought back below $6/share from the new $60M buyback program.
The CEO is apparently a long term holder, content with his $0.5 million and rising dividend per month. I only expect him to personally sell when he feels his shares are very over valued.
I believe the CEO sold the stock he bought back at around $3-$4/share for $5.48/share....and a portion of the $6 convert. he is now buying back under $6/share.....perhaps buying today?
What does he end up with? Far fewer stock flipping, short term retail shareholders crying on the msg boards that they are not getting rich fast enough......replaced with a long term 20% institutional holder. I believe he might do this again in the years ahead.