I believe this company is not a fraud, far from it, checkout the apartments they have built and building in China, they are real.
TPG has backed up their finance report with their $100M investment.
Ernst and young is the auditor of their financial reports.
They are still doing things in their Chinese ways.
The market is selling as this company is a fraud.
But it's just a CFO resignation.
If it is a fraud, TPG would not have invested $100M at $6 this August, isn't this clear?
It's panic sell, good opportunity for the company to buy back shares.
It's all speculation, TPG has just invested $100M to the company.
The company should make it clear.
It's not the time to give the CFO personal face but it's about the clarity of the company.
due to personal reasons relating to the roles and responsibility of his position
It's a good time for TPG to get more involve and aggressive on protecting their $100M investment in the company.
If this company was a fraud, they would have done it much better.
Can't they just say the CFO resigned due to heath issue?
They didn't say that because they are honest.
He resigned due to personal reason and that's it.
Maybe TPG has something to do with it, forced him to resign?
More aggressive stock buy back plan coming?
1. Buy back stock massively right now.
2. Give more details on CFO resignation, maybe he resigned just because his heath issue?
This is quiet normal due to the fast work pace in China.
If you know how fast the career pace is in China.
He might be just forced to resign and that's normal to just give him some face.
But why XIN announce this news just before the dividend registration?
Can't they wait a little bit?
The cash that XIN has is more than enough to buyout the company.
Elong is under major transformation to mobile but how could you assume that mobile users are more loyal than PC users?
Website traffic is dropping dramatically, growth rate is dropping as well, competition is heating up.
Elong management was not capable to make profit on either traditional call center or online booking on PC. Now they are switching to mobile platform, would this popular strategy make them the leader of the market? CTRP now has 35% booking from mobile platform. Elong is clearly far behind even on mobile.
The key problem of Elong management is that they don't know how to build customer loyalty.
Ever lasting coupon code program is not going to do that.
TPG required a board seat for a reason.
Here is what I would do if I were the manager of TPG.
1. Urge XIN to speed up $60M stock buy back plan to reduce up to 16% total shares.
2. More stock buy back to increase the value of TPG investment.
3. After massive stock buy back, urge XIN to increase the dividend to $0.50.
The management should do the same thing if they are not stupid.