Agree 100 percent. USA was grossly overheated. Remember 10 percent down mortgages, then no down payments, then liar loans, and crooked appraisers, etc. China is no where near the bubble we were in in 2007. China will reduce new building starts and ease it's way out of a small amount of over capacity.
I think you're onto something. The current method of selling houses is very costly and inefficient. The business model of thousands and thousands of small real estate agencies scattered about seems to be about 30 years behind the times. The typical r/e office is staffed by part time employees who spend 80 percent of their time not accomplishing anything. Nevertheless, the real estate commission business is huge. The entire system needs to be modernized.
I don't take a $92,00 repurchase to be encouraging. When a company stock is selling for 3 X annual earnings and the company has cash available, the BOX should be eager to repurchase.
Seems very unlikely that Putin, or top Russian military guys, wanted to bring down a commercial passenger aircraft. No doubt some separatist heads are going to roll, along with some Russian military advisors. Since the Crimea situation started, Yandex is down about 25 percent. I anticipate only a small, and temporary, decrease in earnings growth rate and the stock back to 40 within 18 months.
The Yahoo "key statistics" page has NBV at $12.10 per share. Not unusual for a property developer stock to sell at less than book value, but Xin is selling for a huge discount. That's just the way it is with small cap Chinese companies these days.
We may hear nothing more from management or from Bleeker on this matter, so getting the next quarterly financials out on time and without issues is a very big deal.
Agree lucky. Nothing good would come from dismissing KPMG unless their audits are shown to be deficient, and that would present a whole new set of problems. Let's hope that the next quarterly FS's are released timely and without "issues".
Your confidence is not warranted. Until KPMG signs off on the next quarterly report or an independent firm responds to the allegations, doubt remains in many minds. You have made your decision but the majority of investors have not.
Selling at 1 percent of book if the financial statements are accurate. They clearly are not. No one knows what real book value is.
The CFO's history is a very valid and very negative point. The others are related to numbers and will eventually be proved one way or the other. This is going to take some time. I would think at least 30 days. As noted in other posts, I think company response was weak. Showed no real outrage. Response was boilerplate.
Considering the severity of the charges, I thought the response was weak. Expected flat out outrage but we got boilerplate. The CFO's history is very alarming.
Will be fascinating to watch this play out. Hard to believe that MS would get duped by a magnitude as suggested by the SA article, however the majority of charges of this type against Chinese companies prove to be more right then wrong.
Their comp reply did not give me a lot of confidence, so I tried to short 1,000 shares 30 minutes before close. Trade never went through as request was labelled "pending review". The issue with the CFO and his history is most alarming to me.
Your point about risk is well taken, but you should hold back on the exaggeration. They are not ALL frauds. The list (of fraud) is not ENDLESS. Some auditors do provide SOME protection. It's all about reward vs. risk. The risk is very high. On occasion, I am willing to take the risk because I see a 200% upside. Don't forget that BIDU and VIP and China Mobile, Telecom, and Unicom all came out of China.
In the accounting world, net income should be used only once. It is the bottom line of a GAAP produced Statement of Income. Using "profits" makes it harder to distinguish GAAP from non-GAAP and people like Benioff prefer the murkier descriptions. I looked at my post above and even though I'm a retired auditor, I used "profits" instead of "net income" myself. I need to practice what I preach. I agree 100% with everfoxy regarding SalesForces very questionable presentation of their income. I'm not sure anyone in that organization is brave enough to even tell Benioff what the GAAP prepared Statement of Income looks like.
Agree. Rural to city migration still has a long way to go in China. Probably 30 plus years. Every country has down periods in Real Estate, but long term investors ignore those, unless of course the highs get to ridiculous levels such as USA 2007. That was fueled by Washington D.C. insisting that every American should have a right to get a mortgage to own a house. Liar loans, no doc. loans, no down payment loans etc. China is no where near that territory.
You got two good answers to your question. A stock is priced on future anticipated earnings. When very bad news is priced in, and then it becomes "less bad" the stock price will increase.
Everything is relative. China going from 7.7% to 7.5% causes USA based investment advisors to wring their hands. In USA, GDP goes from actual negative 2.9% to a hoped for 3.0% and the advisors sing the praises for the good old USA.