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

To: Spekulatius who wrote (49084)	8/12/2012 7:36:01 PM
From: Jurgis Bekepuris	Respond to of 78648

XIN - I think we mostly agree: the risk is in the RE business, its requirements for cash (as you observed), and partially-invisible leverage of RE assets. They might have entered some financing deals at subpar terms just to get growth and capital. As I said before, I'll skip it. :)

To: Spekulatius who wrote (49084)	8/13/2012 10:34:12 AM
From: thatsnotluck	Respond to of 78648

<<In a way, these diclosures make an outright fraud less likely.>> is this is one of those chinese RTOs, i thought they were required to be fraudulent, no? my personal experience with a couple of them and from watching at a safe distance for a couple of others makes me think a 10 foot pole is not nearly far enough to stay away. i have been in some where net cash pretty much covered the market cap, but alas apparently they have a different definition of cash than i do. buy out offers from the CEO also seem common. they just never actually happen. if it looks too good to be true....of course there will always be that one that actually works out now and again i suppose.

To: Spekulatius who wrote (49084)	8/23/2012 10:52:21 AM
From: MCsweet	Read Replies (1) \| Respond to of 78648

XIN, From 13F filings, the top shareholder Blue Ridge Capital sold 2.7 million shares last quarter. They own 11 million more shares. It appears that they were an initial investor at < $1 in a private equity fund and the fund is winding down, so they are selling out. From an old seeking alpha article, I saw mention of the company canceling a secondary offering a couple years back in which Blue Ridge would have sold shares. IMO, the Blue Ridge sale puts a short-term cap on the stock price, but also is positive for the long-term as the company will be able to complete its buyback at cheap prices. Some other smart institutions such as Renaissance Technology and Millennium Technology increased shares during the last quarter and the CFO will be doing a US roadshow to drum up interest. MC