China Housing & Land Development, Inc. (NASDAQ:CHLN)
CAPS Rating:
The Company, through its subsidiary Xian Tsining Housing Development Company Inc., is engaged in acquisition, development, management, and sale of commercial and residential real estate properties.
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I picked CHLN because I saw that they had someone on the board of directors that is also on the board of a company I own in RL. So I want to keep CHLN on my radar screen also. I don't want to see any shenanigans going on.
I do like that they're in western China. The Chinese government is more focused on western China in the new five-year plan. The east coast always receives most of the benefits of economic expansions in China and the government has to be concerned about peasant revolts out west. Of course, they're also dirt cheap, if the financials are accurate.
Peter Lynch used to point out that, in situations like this, if you can hit big on one out of ten, that more than makes up for several going to zero. The math works out the same for CAPS points, but is a bit of a drag on accuracy.