The market does not believe its financial reports even with TPG invested $100M into the company between $5.48($30M common shares) and $6($70M convertible notes) a few months ago.
Now the CFO resignation just one week after Q3 report and two months after his starting of his new job has somehow confirmed the concern of the market. Also the way XIN is announcing this news is not shareholder friendly.
If the company does not do anything to clarify this matter, this stock might go even much lower.
It's so sad that so many Chinese companies are fraud and I really hope XIN is not one of them.
Any clarify would not satisfy the market, maybe only massive stock buy back at this hard time would
help the market to believe it again.
The fact that XIN is trading at $5.63(much lower than its cash level $10.5) and while its book value is $11.55 shows that the market does not believe its book.
As an investor, this is the key thing you must figure out:
Are they cooking the book or not?
Isn't that the basic question to be answered?
Who could give the answer? The company itself? Or TPG?
You have presented the classic case for reward vs. risk. We all make our own assessment and then roll the dice. Normally I would not use the dice reference in investments but in this case it applies. I am way up with Xin and I am staying in.
How about this?
I think the CFO was way underqualified for his job, the chinese people doesn't like that, its a no go for the matter.
On the other hand people with strong short positions are exactly lookin for this kind of events when the fear comes, there is rich people, and there is stupid people. Very STRONG buy.
Sentiment: Strong Buy
Why are you so sure this company is not a fraud?
I wish to listen to your opinion since I am a shareholder too.
Why do you think this CFO would resign just one week after Q3 report?
I don't really understand what does babble bovine scat mean and why are you so obsessed with it？
So far XIN has been the worst investment I have made in the past eight years.
It's not that I have never bought a stock that went down under my cost but it's just the bad feeling that I can not completely trust the company.
I bought shares at 1.74 12/30/2011. At the time everyone thought it was a fraud. Less than two years later, up 223% (after today's loss). It is one of my better buys in the last 8 years.
I don't think their numbers are fake, but I would have to say they are terrible, absolutely terrible, with shareholder relations and communication. Today's press release was so vague that it would scare everybody who has not followed them, and their pathetic shareholder encounters, as long as I have. It scared me, but don't plan to sell them at this point.
What the heck does "personal reasons" have to do with "roles and responsibilities"? WHAT? I thought it might be typo when I first read it. But, of course, no further clarification. Typical. You are afraid of hurting his feelings or getting sued by your recent hire. Not concerned about shareholder lawsuits? The math is the same? No way. Better clear this up quick, more needs to be explained, and I really don't care about hurting Mr. Wei's feelings or the company getting sued by him.
Also, shareholder relations - are you going to call me back? I left you a message hours ago when the stock was still over 6. Not only did you not answer the phone, you didn't return my call. You put out a pathetic press release. Call me back please.
Hold for now, I guess.