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

To: MCsweet who wrote (49059)	8/11/2012 12:53:47 AM
From: Spekulatius	Read Replies (5) \| Respond to of 78644

XIN. - thee numbers are almost implausibly good. They hold only 635M$ worth of real estate in development but do 425M$ in revenue in one quarter. That means they turn their estate assets into cash in only 1.5 quarters or 4.5 month. We are talking high risers there not single family homes. Is this possible? They hold a tremendous amount of cash equal to the value of the buildings in development and 3 x the amount of debt (why having debt at all with so much cash?). Either geniuses at work, or it's a total fraud...

To: MCsweet who wrote (49059)	8/12/2012 2:42:03 PM
From: Jurgis Bekepuris	2 Recommendations Respond to of 78644

XIN - If I had to choose cheap Chinese company to invest into, I would definitely prefer non-RE related one. IMHO, RE is one of the riskiest places to be in Chinese market, since IMHO there may be a bubble there and if it pops, this can crash way low. I would prefer companies that might not be directly affected by RE and infrastructure slowdown/drop. This is part of the reason why I'd rather buy Chinese gaming companies or advertising companies rather than XIN. OTOH, there is value in diversification, so XIN might be a position in well diversified Chinese stock portfolio. I will skip it though. Disclosure: I have large positions in CYOU, GAME, PWRD.