Now, we know the buybacks are just gimmick. Today's earnings release showed the diluted ADS jumped by 26% year over year to 90.8 million from 72.2 million. This may be old news since its end of 2013 number already 90 million. At least, we know the buybacks are used just to issue even more shares.
PS: I have not come back for a while. This morning, the XIN earnings release pupped on my SA screen. Then I read it. Terrible. I am glad I got out last year. Dishonest management. All the efforts they put is to grab more money from shareholders. Do the math. Their capital distribution is not even near the pace of share dilution.
Company is growing. Stated goal is fast growth right now -- we can all agree or disagree with the idea -- but they are executing on the stated objective in a tough market. Book = nearly $12. Price = $4 Divvy = 5% -- buy or not as desired.
Yes. They are growing the top line, but the bottom line decreased by 68%. This is something I expected long time old. When people screamed about how low its P/E is, I said it is normal for a company that will see its EPS drops substantially in the future. I used to feel XIN's fair value is $5. Now, given the declining RE climate in China, I have to lower the fair value estimate.
Again, I no longer follow this company that closely. So, I have no exact target number now. I guess the current price already reflects its fair value. XIN will fluctuate depending on the prospect of China's RE climate. For now, it does not look good. it is the first time in the last 15 years that the market cools down without government's interference.