NikhilJog,
I think you are missing the point of one of the most basic approachs to value investing, which is to buy stocks at low multiples. I go where the best value leads me. (This has served me extremely well over the past 11 years, although not so well recently.)
Regarding XIN: the cash, low PE, low PB, and large buyback are very attractve IMO, but they could be a scam or a value trap. This is definitely a speculation. I would not invest my life savings in it.
That being said, almost everbody knows, including your mysterious "peeps," that China is slowing down and has problems. I myself don't have confidence in China as a whole. For that reason, I have bought some FXP (short China etf) as a partial hedge.
I am not posting to simply defend my position. I would like to hear countering viewpoints to they extent they include real analysis or factual information that I have not considered. If I receive reliable information China's tier two market is going to implode or that XIN is a scam, I would sell out of my position. I have not seen it as of yet.
Thanks,
MC |
