The divi benefits the long term investor more and the buyback benefits shorts and swing traders.I would guess a long term investor would not see much benefit from buybacks.
Maybe we should start a shareholders' drive to force somebody to buy us, the management tm itself (taking private) or some VC firm, otherwise we all pledge to vote to demand XIN cease its existence and payout it's shareholders equity.
no worries. y, def not the first time, but it is one of the biggest gaps between the two numbers i've ever seen, on a percentage basis.
it's frustrating that i can't think of a way -- beyond jeff's good point about potentially attracting new people to xin -- that the gap can help us.
"but $8.59 gets investors looking."
Decent point, but what we're saying now is really that the size of the gap between share price and book value might interest some folks to look at the company.
We're no longer saying the $8.59 number has any impact on share price (outside of the unquantifiable amount of eventual buyers who first clicked to XIN due to the big difference in BV and share price), right?
Maybe. But at least now I understand why some folks' price targets are in the $8+ range. They feel the share price should be equal to or greater than the slice of Shareholders' Equity represented by each share.
Is there any way to get the $8.59 number to help the share price, without having to cease operations?
I hope the answer's yes, but if the answer's no, then -- since we don't expect XIN to end anytime soon -- doesn't that mean that the $8.59 has no impact on share price?
The book value does not have to affect the share price, but it gives investors an idea of how much they are worth, and gives a starting point to negotiate with anyone wanting to buy the company.
If the book value was $2.00 a share, then investors wouldn't want to invest, but $8.59 gets investors looking.
All Chinese stocks have been hit bad by credibility, and XIN was one of them. They will come back, and when they do, I will still have my 30k shares.