Agree, but treasury yields are going up because someone is selling US government bonds anyway. I wonder if the Bank of China is unloading some of their US treasuries. That could throw a monkey wrench into the US housing recovery if the Fed ends up increasing rates shortly...
The price of electricity has more to do with the price of gas and coal than oil. But the low oil price suppresses the energy sector altogether. There might be some good news coming with China feed in tariff related problems getting no resolved and the penalties on Chinese producers imposed by the U.S. And Europe may be dropped soon because US and European companies have moved into the more profitable downstream segments. So does SOL and their margins are improving. New companies cannot enter the market for cell and modules anymore because it's only profitable for the most efficient companies. I believe things will look better next year!
... the closing price of August 25th, when the Dow tanked. TRN is massively oversold and Wells Fargo is only one of many companies that cover this stock, so is their opinion the reality? If Warren Buffet likes railroad stocks, so should you at this price.
Market will turn at the end of today' session. And the good news for this one is that now the China panic has finally reached everyone on Wall Street.
if not the market is going to tank!
that's what I said, so I believe you are laughing about your own stupidity. and what are you talking about then in your post. another IPO is not going to happen.
Zhang owns 40% + whatever he may acquire based on options given from the recent 'employee incentive plan'; and TPG owns 8%. So of Zhang can get TPG on his side he can take the company private for very little money compared to the enterprise value. And that is a much more likely scenario than a secondary in a market other than US - the company has expanded at a rapid speed without any secondary offering of stock to raise money, and I believe they can continue to do so via conventional debt financing. With a market cap of around $200 million any meaningful amount of money raised via an offering of stock would cause massive dilution. And now that they have build a reputation in China via Oosten and their other minimal business in the US like flipping lots in Nevada and their NYSE listing, why would they need to remain listed? Makes no sense at this price.
... that is the pathetic reality of this stock and how much it is 'desired' by Wall Street. Here is the best that XIN can do at this point:
1) Slash the dividend and use the cash for additional land purchases in the US instead, or to reduce debt.
2) Reverse split the stock 3:1 to bring the price above $5 once and for all. With the current low price this stock cannot be bought/held by many funds and it is not marginable, so naturally it is sold first by those that buy and hold stocks on margin to increase their exposure. Because of the low price the stock is illiquid and there is not enough shorting. That turns off larger holders because they cannot liquidate their position fast in case they desire to do so.
3) Get an analyst on board to cover the company. If there are no expectations set with regard to financial performance, expectations can't be beat and the share-price basically just fluctuates around where it is now (which is the price for the dividend return, not the company prospective of growth and value). The company is just not priced efficiently by Wall Street and the lack of analyst coverage plays a big role in that because not every hedge fund/fund manager can spend their time on Chinese media to pull out whatever information star seems to find. Appropriate PR then is another issue that must be fixed.
... and to make things worse: The 50 day moving average, now at $2.79, has dropped below the 200 day moving average ($2.80). That's a bearish "death cross" and it's bad omen from a technical perspective for stock that already has little interest.
...and volume will remain low because Wall Street does not care about XIN. No matter the CFOs dog and pony show in the US, Wall Street knows about this company because they are building one of the most prominent condo complexes on their door step - with ferry's going across the river to downtown Manhattan. Everyone knows the earning from the Oosten are coming in 2016, but it does not matter for the stock price because it is the Chinese economy slowing that Wall Street worries about and you don't buy real estate related stocks in a slowing economy. No plan to expand in the US either - Oosten was all just a publicity stunt and it failed. Maybe Tom Gurney got a nice deal on an apartment there, or the CEOs relatives...
...with no news releases for another 2 month and continuing liquidation of XIN by stock holders until the end of October for tax loss selling. that's what will happen.
...and it EJ finally going to be taken private or was all of this just a scam to temporarily push up the price of EJ?
no impact on XIN anyway. the stock is a PO^ and the XIN dog and pony show in NY last week obviously didn't do anything to attract investors. 10 years from now we will all get a nickel per quarter at a PE of 2.5 on this, because Wall Street does not care about this company and they never will...
It will flow into dollar denominated bonds because of higher returns than for example in the Euro zone. But I think that is already priced in because it is expected. Strenghtening the dollar against other currencies, in particular the Euro, is what will continue - is not good for exporters. On the other hand, banks might benefit - so it really depends on what sector you look at. Some will suffer some will gain...
... and you were on the call and addressed this with them leading others like Matthew Lawson from Morgan Stanley to follow up. This was the first time I actually felt like people were asking the right questions - the buyback, the jet, the high interest bonds, and why they have no coverage and interest on Wallstreet. Thanks, that was great!