china put the screws to builders today and the screws will put serious down pressure on Xin this wk.
Second Try - Found an article regarding tentative agreements between IPC Corp Ltd. and Xinyuan Real Estate. IPC acquired 51% of an Xinyuan subsidiary for $5.1 million of stock and sold an hotel to Xinyuan for $41 million. IPC shares have increase substantially since the announcement on Monday and this may explain the spike in XIN shares on Monday. Tried to post link, but I think it got rejected. Google IPC Corp and Xinyuan, International Business Times has the most informative article. GLTA
Ronnie Chan, A Hong Kong real estate Tycoons mid year letter: 1. Comments on China and Global Affairs:
“The United States, which is the most self-righteous country in modern history, now has a president who regularly blurts out facts with alternative facts, and truths with untruths. The media, which has long been regarded as the bastion of the Western concept of liberty, is now daily inundated with fake news. The Internet certainly exacerbates the problem.
Relatively speaking, Asia today appears to be the more peaceful part of the world. China, which endured tremendous turbulence in much of the 20th century, has in the past 20 to 30 years enjoyed stability and peace. While the United States is in the long run stable, it is steeped with short-term uncertainties and noises. China on the other hand appears to be more tranquil, at least in the near term, a condition that can last for decades and even longer.
When economic growth rate is taken into consideration, the country looks even more attractive as a destination for investments. For the foreseeable future, it should be more or less double that of the West, if not more. It is far easier to make progress when swimming along with the current than against it.
That said, we are keenly aware of possible sudden troubles. Chinese history of the post World War II era tends to bear out this fact. But all things considered, we count ourselves fortunate to be investing in China. There is hardly another market, especially a sizable one, that is more alluring.
As in all significant ventures, there are two possible attitudes toward the BRI [Belt & Road Initiative] — to be the players or the observers. Some players will fail, as seen in all human endeavors; but others will succeed. The latter will be economically rewarded while the observers will pay a huge opportunity cost.
The BRI presents a lot of upside and very little downside for China. This is good news for us. As China gets richer, people will consume more, and our malls and offices should both benefit.”
I’ve seen some nice gains in this stock since 2012, but I don’t recall a gain this big in a single session and the best volume in years. GLTA
Xinyuan Real Estate: The Tide May Finally Be Turning
Is investor sentiment finally starting to improve? I think so. The bull case for Xinyuan Real Estate shares has been in place for years now. Xinyuan Real Estate
Guys, can we stick our comments to the company and your views on the company? no need to comment on others on the board. I'm a long term XIN holder and recently added more around $5, after seeing management consistently delivered on their promises to pay dividends and buy back shares. XIN is attractive at its current price level compared to HK listed Chinese developers, and sales is accelerating based on recent project news and plans of new sales launch in the 2nd half this year.
American builders are averaging a PE of 14-15. At a PE of 10 XIN should have a pps of 8.50 and a dividend of 5. I know Chinese companies should be bought at a discount but those numbers are pretty conservative.
-------- Who is buying? ------
Not likely XIN in any quantity. Since XIN is limited to, at most, 25% of preceding 20 trading days volume, the most they could buy is under 50,000 per day. Also XIN has a good history of not paying too high a price with their buyback. In addition, the bond covenants, are fairly restrictive. XIN's buyback should slow way down in second half 2017.
Volume is drying up. Is the buyer licking the bottom of the bowl?
I took advantage of the drop this morning and doubled my position @5.78.
Appears to be the half year detailed filing, like the 20-F only not audited. XIN has done this for several years now. I have assumed in the past that it was for big investors interested in making an investment like TPG did.
If you bought around $2 in January, 2015- in 33 months return would be 300% and that is not including dividends!
Birinyi has spoken, he sees blue skies ahead, when Birinyi speaks I listen, every word. Birinyi follows the tradition of Lawrence Jarvinen, Gerald Loeb, these traders knew how to interpret the market data and predicted near term (6 months) market direction that guided them to buy or sell a stock or stocks. They raked in money until they died. So, for them stock market was not a casino, it was a mega ATM. As XIN stock was breaking out, someone placed 10,000 shares at 'ask' column, ordinarily it would have taken a long time or not executed at all, not this time, someone quickly took it away, I said to myself "Who is smarter, buyer or seller?" I concluded it the buyer. Not long after, someone placed 26,000 shares on the table, it didn't last long at all, in one scoop the buyer just grabbed it. I knew that something serious was happening. I have not seen anything like this before. Someone with capital was grabbling whatever number of shares he could place his hands on, these people know price change ahead of time. I know that these are better traders than me. So, in the final analysis, Clara Peller has spoken "Where is the beef?" I have not seen a stock coiled this tightly for this long and I am not a young man or neophyte. Now, CEO has trolls lined up to rev up the price. Interest burden has been drastically reduced.
For XIN investors its been a sheer pain, torture, misery and frustration during the past ten years, the chart below speaks better than my words: http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=xin&insttype=&freq=2&show=&time=13 Last year, one XIN investor said it was an extended inverse head & shoulder formation and predicted a sizable and prolonged upside breakout. I agree with the assessment. It also looks like a massive dish shaped bottom formation. Either way, this stock is ready to breakout. We, however, still need a confirmation. I need to hang tight and be patient, I have a tendency to sell right befor a major price breakout and buy a stock right before price drop, where does this feeling come from, I have no clue, but I am speak the fact. My urge to sell tells me that this time it may be more than smoke and mirror. This thing has risen a bit so price will move up and down for a while but based on company inside news and the prevailing economic status in China, I am predicting that forces that come from the bottom formation will be too strong to resist this time.
Still have not received my dividend from fidelity. Looking for 250 more shares.