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$1.06 0.00 (-0.01%)
10/10/2008 3:59 PM

Xinhua Finance Media Limited (ADR) (XFML)

CAPS Rating:
**

A diversified media company in China that currently focuses on business and financial news as well as wealth management and affluent lifestyle programming.

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Avatar Allstar13913 (99.88) Submitted: 6/17/07 6:19 PM : Underperform Start Price: $8.73 XFML Score: 45.56

This company is experienceing a confidence crisis.





There seem to be 2 stories to everything happening here. I'm unsure like many investors of its financial controlling methods and related party transactions.





And now the company, which has lost money since its IPO is offering a share buyback? This makes little sense, since an IPO is used to raise money for a company with a capital need.





I don't trust this company, and believe it has nowhere to go but down.

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Avatar blackdonkey (< 20) Submitted: 6/18/07 4:39 PM

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Avatar Asaf777 (60.05) Submitted: 1/07/08 6:45 PM

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Xinhua is one of the rare opportunities in the market for that matter. it is now trading in a market value of less than 390 Million Dollars while it's stockholders equity is more than 445 Million Dollars. More important, Xinhua is expecting revenue of 42 to 27 Million dollars - an increase of roughly 100% yoy. this is not over: Xinhua reported a 37% profit margins for the last quarter. and according to analysts (see Ameritrade, MSN Money and Yahoo Finance) it is expected to earn 67 cents per share in 2008, means Price to Earnings Ration of only 8.4 according to the closing price of yesterday ($5.64)

Last time I have seen something like this was with Canadian Solar (CSIQ), the undervaluation was too extreme, and I wrote about it here when CSIQ was under $10. today, less than months later, it trades above $20. You can find this article here: http://seekingalpha.com/article/51337-three-cheap-clean-energy-stocks

There has been some confusion among the market regarding the price at which Yucaipa acquired XFML's shares. The Yucaipa Company acquired 6.2% of XFML's shares at the price of $3 per common share. As each ADS represents 2 common shares for XFML, The effective purchase price was $6 per ADS instead of $3. Comparing with this price, the 15 day average closing price for XFML prior to the Sep 26 announcement was actually $5.77 per ADS.

Hope this clavicles your concerns regarding this issue.

The danger of holding Xinhua shares is in the fluctuation of the markets, not in the fundamentals of the company itself, therefor I think holding it for the long run will be rewardable. In the short run - who knows?

Please be smart enough to do your own research before touching this stock (or any other for that matter). this is only my opinion, and it is a fact that every one can be wrong.

have a good investments!

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Avatar metoo105 (99.80) Submitted: 5/14/08 4:54 PM

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Clavicles?

Do you mean clarifies?

Would be nice if clavicles was a verb.

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Avatar LurkyLurky (99.96) Submitted: 9/18/08 3:45 PM

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Well, one can shoulder a burden, knee someone in the groin, elbow one's way through a crowd, arm bears, foot a bill, and head for disaster... not sure what clavicling something or someone would do. Break the clavicle, probably--I hear they break a lot.

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