Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: NikhilJog who wrote (48695)	7/11/2012 12:51:33 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78651

duplicate

To: NikhilJog who wrote (48695)	7/11/2012 12:57:57 PM
From: Paul Senior	2 Recommendations Read Replies (1) \| Respond to of 78651

Nikhiljog: XIN. I'll explain it or justify it this way: This is a Ben Graham oriented thread. It is therefore metric based. As in stocks trading at low multiples. With some historical relevance. (hopefully/usually) 1. Yes, I am buying XIN here precisely and only because it is trading at low multiples. 2. I did not go out looking for Chinese real estate stocks. I have no desire to be in Chinese real estate in either a direct or derivative way. XIN came into view with metrics I liked. (With not-so-good historical support though) The stock found me. I bought. Pretty much that simple, rightly or wrongly.

To: NikhilJog who wrote (48695)	7/11/2012 1:47:03 PM
From: MCsweet	Read Replies (1) \| Respond to of 78651

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