The fact that XIN is trading at $5.63(much lower than its cash level $10.5) and while its book value is $11.55 shows that the market does not believe its book.
As an investor, this is the key thing you must figure out:
Are they cooking the book or not?
Isn't that the basic question to be answered?
Who could give the answer? The company itself? Or TPG?
Why are you so sure this company is not a fraud?
I wish to listen to your opinion since I am a shareholder too.
Why do you think this CFO would resign just one week after Q3 report?
I don't really understand what does babble bovine scat mean and why are you so obsessed with it？
Do you think I had the chance to sell my shares?
I don't even know what's happening here.
Why a CFO resignation announcement would trigger 10% drop?
Keven Wei's English is still much better than Yong Zhang - the CEO.
Originally, Yong Zhang was trying to speak Mandarin but he managed to read the statement in bad English but it's still a good try and hope he could improve his English in the future.
According to the CC, Kevin Wei seemed to believe what he was reporting so his resignation should not be related to false report.
So far XIN has been the worst investment I have made in the past eight years.
It's not that I have never bought a stock that went down under my cost but it's just the bad feeling that I can not completely trust the company.
The market does not believe its financial reports even with TPG invested $100M into the company between $5.48($30M common shares) and $6($70M convertible notes) a few months ago.
Now the CFO resignation just one week after Q3 report and two months after his starting of his new job has somehow confirmed the concern of the market. Also the way XIN is announcing this news is not shareholder friendly.
If the company does not do anything to clarify this matter, this stock might go even much lower.
It's so sad that so many Chinese companies are fraud and I really hope XIN is not one of them.
Any clarify would not satisfy the market, maybe only massive stock buy back at this hard time would
help the market to believe it again.
The market does not believe this company's book.
So what do we do now?
If I were the management, I should speed up the $60M stock buy back plan to prove it's not a fraud.
I still believe we could make it there in the near future as long as this company is not a fraud.
I believe it's not.
It's time for the company to prove that they are not a fraud by buying back massive stocks on Monday morning to push it back to $6.50.
But it's just there are too many Chinese fraud companies out there so the market does not really believe any of them other than a few really big ones like Baidu and Sohu etc.
Sohu used to trade very low as well.
You thought they haven't tried before?
Almost every Chinese company trading in US has been tested by these guys.
XIN has survived their test and attack.