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Xinyuan Real Estate Co., Ltd. Message Board

  • yinvestor yinvestor Nov 11, 2013 2:08 PM Flag

    TPG should urge the company to speed up the $60M stock buy back process

    Now TPG has one seat in XIN's board, they should urge the company to speed up the $60M stock buy back program to maximize their investment. Buying back more shares would mean their shares in XIN is increased.

    I would do that if I am the CEO of TPG.
    XIN still has near $600M cash and $233M restricted cash.

    Sentiment: Strong Buy

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    • TPG required a board seat for a reason.
      Here is what I would do if I were the manager of TPG.
      1. Urge XIN to speed up $60M stock buy back plan to reduce up to 16% total shares.
      2. More stock buy back to increase the value of TPG investment.
      3. After massive stock buy back, urge XIN to increase the dividend to $0.50.

      The management should do the same thing if they are not stupid.

    • Why, they are aggressively buying land that was the point of borrowing money?

      Sentiment: Hold

    • Why XIN does not do massive buyback is beyond my comprehension.

      It is bigger NO-BRAINER than famously quoted Apple buyback by Carl Icahn.,

      XIN will get 2X to 3X return on their buyback investment than they will ever make in their core business. They would have significantly increased their EPS.

      XIN does not need 800 million dollars for land purchases. They have nice cash flow coming in every quarter. The could keep 500 million and still have fortress balance sheet.

      • 1 Reply to teknowiz
      • A few reasons why XIN doesn't do massive buybacks...beyond their $60 million current buyback.

        It takes US Dollars to buy back one offering Dollar debt is going to finance the departure of equity holders since debt holders only care about debt holders....their interest payments and safety of principal.

        The Chairman owns a different class of shares than other shareholders such as myself. He can't buy and sell his shares at will, for example. He apparently is satisfied with a rising stream of dividends. He doesn't even have to buy his own private jet.

        The Chairman has others who have needs beyond equity holders...employees, for example. He probably has several sons who wish to be big-wigs in the real estate industry.

        The real estate industry is about size....get big or die.

        As for TPG "urging".....that is a laugh...TPG has 6 million shares and the Chairman has 30 million.

    • face it you''ll be happy if it gets even for the day

    • TGP should urge the company to increase the dividend as well.

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