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Xinyuan Real Estate Co., Ltd. Message Board

  • caseysxyz caseysxyz Jan 20, 2014 5:20 PM Flag

    Xinyuan Real Estate Co,, LTD Solved Part 1

    There are three type of posters to this board – wǔmáo, short sellers, and newbies wishing to buy the most undervalued stock on the market. Only the wǔmáo and short sellers efforts are justified.

    Westernized wǔmáo, 50 Cent Party, or wǎng píng yuán, ape who comments on the internet, is internet commenter. This is respected profession in China, like doctor, lawyer, or CPA. For those at the peak of the profession, those employed by the Chinese Communist Party (CCP), a certification test and education achievement is required. The wǔmáo has one focus. By any means possible, destroy any information threatening the stability of China. In the west, we call this type of information the truth.

    The company certainly has employed wǔmáo who post to this board. Using wǔmáo would be significantly cheaper IR than an actual IR function. Their efforts are beneficial to the wǔmáo, as they are paid on a per post basis.
    The newbies come to the board looking for information after stumbling across this super value stock. They have run the analysis. The stock is trading at significant discount to comparables. It is selling an in-demand product in a closed market with 1.3 billion potential customers. It has a great balance sheet with a Big 4 auditor, and until recently a western CFO from a prestigious US school. It has consistently delivered earnings. The company pays a regular quarterly dividend and often participates in stock buy-backs. What is there not to like?

    The newbie might even buy at that point or continue their due diligence. However, a couple things become evident. The company generally trades in a narrow range, except at quarter-end. The company, although with sterling balance sheet, has borrowed money twice at absurd cost of capitals without any clear need. The Chinese company, in allegedly the hottest market in world, has taken on projects in the United States.

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    • Chairmen Young is a true genius. I can point to, two articles which will affirm he had the foresight to borrow money at the right time and will over the next 6 months will become a major trend of Chinese based companies. 1) Chinese Developers Market Dollar Notes Amid Surge in Home Prices 2) Chinese developers face tighter financing, local curbs,S&P says. after you read them come back and we can talk.

      Sentiment: Buy

      • 2 Replies to whitegod303
      • You're a class one schizofrenic but I rather like having you on the long side for one week than shorting the other three weeks of the month.

        Sentiment: Strong Buy

      • What is there to discuss? You and your supporting articles are applying western ideas to a Chinese company. In the west a company focuses on maximizing shareholder's value. This company should be trading at some where between 10 to 15 per share. It did for a short time after its IPO but has never approached a reasonable valuation. The trading history is a quarter-end pump and dump. Founder or not, Chairman Young would have bounced many years ago at any other company. Chairman Young is a genius. He has run his company ably by supporting the greater good of China by diligently following the dictates of the Chinese Communist Party (CCP). Investors just do not give a hoot about the sovereign fund of the CCP unless leads to superior profits. The business hall of fame is full of business genius who could not raise a penny. Jeff Skilling is the most immediate example. If Chairman Young is delusional enough to think a non-commodity stock without long-term valuation growth is a good thing, that is reason enough to sell.

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