Xinyuan Real Estate (XIN)

Currently, I live in China. Homes are typically purchased with 30% down. In my opinion, there is very little "artificial demand" created by easy money or leverage in the middle income housing market here. As a massive population shift is currently underway in China from rural to urban... housing demand is real, very large, growing fast, and difficult to stop. Ultimately, I am reasonably confident that this source of demand (internal Chinese population migration) is very much uncorrelated (in the long term) with other sources of return currently found in your portfolio, making XIN an ideal diversification addition. However, in the short term, all correlations converge to 1, as fear trumps any other emotion in times of crisis. This creates an opportunity for the disciplined contrarian investor who can now buy a fast growing, operationally profitable firm for price just above cash per share and expected earnings per share and well below book value... in one of the largest future markets in the world. Also, remember that Sam Zell (one of the most successful real estate investors in recent times) is a major equity investor in XIN and has already successfully implemented this "high turnover, assembly-line, middle-income real estate development" strategy before...Homex in Mexico and Gafisa in Brazil. Here is an old article that discusses both: http://www.reuters.com/article/companyNewsAndPR/idUSN2520346020070525. Finally, institutional coverage and investment is currently minimal, but as more money targets China in the future, XIN will surely receive more attention and investors. XIN has simply been pulled down recently, as anything related to China or Real Estate has been destroyed by the unwinding of the housing market bubble and China stock market bubble, but not all homebuilders are the same... and not all Chinese stocks are the same. For long term contrarian thinkers, XIN is a WIN at this price.

the growth alone speels more income and more building and more buying .....these guys are in the right place at the right time buy with the thought of trippling by years end... already have 96% of there last building operations have been sold and now looking to double the build and sell in 08

Today announced that its board of directors has authorized a $10 million share repurchase program, subject to approval by holders of a majority of the company's outstanding shares. "The Board's authorization of this share repurchase program reflects our continued confidence in the long-term growth prospects of our company and China's real estate industry. We are committed to increasing shareholder value and we believe that our ADSs are presently undervalued in the marketplace," said Mr. Yong Zhang, Xinyuan's chairman and chief executive officer.
After hitting its low, this is on its way up.

98 EPS rating in IBD yet terribly beaten down. I usually don't pick stuff not already in an uptrend, but with that kind of EPS growth, I've gotta thumb this one up.

They are focused on providing middle-income consumers in Tier II Chinese cities with a comfortable and convenient community life. They are in 5 cities in China right now: Chengdu, Hefei, Jinan, Suzhou and Zhengzhou. E-HOUSE HOLDINGS (ADR) is the investment play on Tier 1 cities in China.

Rebound

http://seekingalpha.com/article/78034-xinyuan-real-estate-an-investment-in-chinese-growth
Real Porfolio Canidate.

As someone else said, this company is at the right place at the right time.

XIN: Xinyuan Real Estate Co., Ltd. Is the most undervalued growth company I have ever seen. Trading at $5 is totally unreasonable. They just IPOed and had to pay off their preferred shareholders and incurred a onetime net loss. Otherwise, they are growing somewhere around 78%-400% a year depending on whose opinion you’re reading. Not only that, but over 60% of the company is owned by its employees. They are also only doing real estate in Tier II communities, which have yet to be inflated in value, unlike the Tier I.

This company appears well-positioned and at under 2.00 per share looks like a steal at this point. I got in at $1.88.

Doesnt take a mathemetician to understand how many peeps live in China! Chinas potential is scary

Bargain

I think this is potentially a break out stock. It's been beaten waaaaaay down over the last little while, probably beaten down too much. Pair that along with the 78 bazillion people that live in that area, you can see that real estate over there will bring a premium.

We hear that China's growth is slowing...well it is BUT Housing will continue to be a basic need and this company is in the position to meed the demands

interesting chinese residental real estate developer, major upside in the markets they deal in, price beaten down. good entry pt.

Chinese real estate developer. But unlike our real estate developers, they don't need to engineer returns with massive leverage. Way oversold.

Unfortunately, I got in at the wrong time. Bought shares at $4.10. I'm sticking to my gut and riding this one out, I'm more than sure that with the China-Russia-India alliance and the growth of China itself will send this stock back up into the $18 range if not more. But hey do not take it from me, this is just my opinion.

They have a good EBITD at 25% and low debt ratios. As China's population and middle class continues to grow, there will be an increase in demand for better housing in Teir II cities. They seem to be greatly undervalued at this point.

Look for growth to slow through 4qtr 08 and 1qtr 09. Fastest growth rate in the world and as they say their not making any more land. They have plenty of cash and a leader in their industry. 10 bagger 2 years forward.