He set up bogus company which owe LIWA millions, then the company disappeared.
Right now it is hard to trace where the money goes.
They need to use the borrowed money to invest to get at least 10% return. Instead, to waste it in dividends. How does it work?
You can only see the book value but can not realize it in most cases. dividend is better but also useless when market is trending down. Right now no one like China real estate industry stocks.
For this stock, "today is bad, tomorrow is terrible, the day after tomorrow will be great, but most guys will die at tomorrow night".
Let's see who will be killed first in the "take no prisoner" game of iron ore market share game. All big three are increasing IO output while China's IO need is reducing. Investors will suffer the most.
For Vale's investors: In Jack Ma's words "today will be cruel, tomorrow will be calamitous, the day after tomorrow will be sweet, but most people will die tomorrow night."
On their website, there are links for Australia, New Zealand, Malaysia, Singapore, but no projects yet. Only US website has project of New York and Irvine. Just wonder why they put those nations on the website.
Rio Tinto has the lowest break-even cost at $42, BHP’s is $51 and Vale is at $60 in terms of ore landed in China with 62 percent content, according to UBS AG estimates.
When the price pass over $15, the lawsuit will blame the company did not disclose its growth and earning potential.
In the last conference call they already said that they are starting 5 or so new projects and many costs are front-loaded, especially land cost, new office, new crews.
As long as they keep the dividends coming to shareholders, the share price has support.
The class action period is from 2009 - 2014, most of the time the price is lower than the current price. The lawsuit has no merit.
In general China real estate is in a stage of adjustment and retreat. It could be a bubble bust or slowly adjustment. In general prices are still steady or slightly lower, depending on the region. Real estate industry is in consolidation stage. Bigger companies will become even bigger and smaller companies will disappear or merged into bigger rivals. XIN management apparently knows they have to emerge from a middle-tier player to become a bigger player. It is a tough play as right now it is not easy to sell homes in the current market condition. Fortunately they have carefully selected their project locations. I don't expect they can maintain their profit margin, but they will achieve their revenue goal. After this wave of retreat, the number of real estate builders in China will shrink a lot and the bubble will deflate. Only the financially strong company can survive.