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No. of Recommendations: 35
$487m cash and equivalents

Prove it. Seriously. If you can't, you're simply playing craps with your money. Unrestricted cash is only $319m. [You can debate whether cash you cannot access is really 'cash.']

Regardless, cash minus debt + A/P is negative in their case. They have $172m in short-term debt due.
[Also, AP is up $100m in 9 months. Why?]

And they are burning through cash each Q. Contract sales were down 33% QoQ.

Audited by Ernst & Young

Ah, the Sino-Forest auditor! Amazing!!

Many of the other frauds were audited by D+T/DTT. The insiders looted the company and fled with the cash. They were helped by the banks' mgmt themselves in many cases.

CFO is Tom Gurnee, Stanford grad, strong track record


Tom was a director of Longtop Financial, which last traded at $19 a 10 months ago before its delisting from the NYSE, hasn't filed their financials since then. It is now worth approximately $0.00.

LFT was IPO'd on the NYSE in the same timeframe as Xinyuan by GS and Deutsche Bank.

Fear generated by Chinese Reverse merger frauds.

Paulson & Co, et al, also got taken in by a successful IPO that wasn't a dual reverse-shell merger. The implication that a Merrill ipo from 5 years ago can't be fraudulent today is...not logical.

Why is the Xinyuan Holdco located in the Cayman islands? Surely HK, Beijing, or NYC would do? Delaware?

Develops property in cities outside of Shanghai and Beijing, less of a bubble there

Ok, This is just patently false.

Smaller cities that have skyrocketed faster or as fast as Shanghai are a larger bubble due to many factors, also because demand may go to zero when things hit the fan.

The China Gov't has been aggressively trying to stop [over]building in Shanghai, and all the builders are focused on the Tier 2 cities.

Whomever bids the highest to the Party leaders is getting the permits in the smaller places to build, and that has created a much larger bubble today in those cities than in Shanghai & Bejing.

Please stop re-posting things from SA that are blatantly wrong. Please.

If you/they had spoken to anyone knowledgeable about Chinese RE, they would have said the same thing I just wrote. Not taking the time to do even the first simple, elementary step reduces the 'analysis' to garbage, before taking the massive fraud concerns into account.

Forward P/E 2.

Normally I pay 4x for my China Frauds, so I retract my earlier criticism, this is half-off! Buy buy buy!
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