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Xinyuan Real Estate Co., Ltd. Message Board

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  • peregrinearchery peregrinearchery Aug 30, 2012 3:25 PM Flag

    More shares outstanding in June than March 2012

    My questions, in no order of priority:

    What is the strategic reasoning for buying the land in the United States? Does it pose a higher profit potential than Chinese land? Is it a move to prove their legitimacy?

    Why does IR only respond to some emails? I managed to only get a response when I put my email title in Chinese.

    Why not have an independant audit? (Besides the excuses they made which seemed weak to me)

    Why keep liabilities so high when cash is so high? Makes me nervous.

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    • Excellent questions. Are you sure some of those don't deserve their own threads, especially the cash audit/verification question?

      I COMPLETELY agree with you on demanding to know why XIN continues to resist a cash audit. It's the #1 step the company can take to fight the perception of fraud problem, and it would cause the price to LEAP.

      The reasons the company gives for opposing cash verification are laughably weak, and the market's noticed.

      The question is simple: If there's nothing wrong with your cash figures, then why do you oppose verifying them?

      That also ties in with your question about the high liabilities. If as much cash is there as you say is there, then why not pay down some of the highest interest debt?

      In addition -- and you might now know this one -- the only suspicious detail about Longtop before it was unmasked as a fraud was that it had "too much" cash on its books, so when investors started asking questions like yours and they got unsatisfactory answers, they sold.

      In that way a few -- unfortunately, only a very few -- avoided losing everything. The Longtop link alone should be enough to make XIN want to verify its cash (unless, of course, there really is something rotten in Denmark).

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