 |
|
|
This company has an EPS of $1.26 |
|
|
per share. |
|
|
Released on Monday, December 5, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Xinyuan Real Estate Co Ltd (NYSE:XIN) traded at $1.84 per share on Monday, December 5th, 2011 (4:00 PM EST). The company has an EPS of $1.26 per share and a price that is only 1.48 times those earnings, which is slightly low. This in total amounts to a market capitalization of approximately $139 million.
XIN has an average volume of 207,000 shares spread over 3 months of trading, and a 52-week range of $1.55 to $2.92 per share. A current ratio of 2.29 and a quick acid test ratio of 1.92 lead us to believe that this company is extremely financially stable. Their total assets overwhelmingly cover the total liabilities, holding a total debt to asset ratio of only 0.56.
One of the things that is perhaps most interesting about the company is the amount of liquid cash they keep on hand. Total cash in the firm amounts to over $435 million, which approximates to $5.77 per share, or 3.08 times the current share price. Xinyuan has a return on equity of 17.8% and an operating margin of 23%, so it begins to be a bit of a problematic reasoning as to why the company is trading at such a relatively low P/E.
In August of 2011, Xinyuan released a quarterly earnings revenue guidance that perhaps artificially launched the stock price to re-approach its 52 -week high, before returning do wn to around its relative trading range through September into October. But there doesn't seem to be any indication that this company is at all impaired.
Technical analysis would reveal that the RSI, in coordination with the fast stochastic indicators, have crossed over the critical middle 50 point line. This traversal could show an upward moving trend, a movement that would be more supported by the MACD in a positive divergence. Currently the MACD is moving slightly above the estimated moving average, so there is some give, but that means the growth has yet to occur.
This could be an amazing time to get into a low priced stock, as it might jump as it has in the past. According to the Elliot wave theory, the stock will trend down shortly and rebound shortly thereafter. Another hint that the stock could become hot in the next few days is a pinching of the Bollinger Bands, an often preceding case of upcoming increased volatility. XIN's intraday volatility beta is at 1.19 at the moment, and the company is extremely small, recognizing a micro-cap status as per its market capitalization.
XIN is likely to explode from favorable revenue guidance from the firm, as long as it is in-line with analyst estimates. And considering this statement from the Chairman and CEO, Mr. Yong Zhang, the company could be a winner, “We are pleased with another quarter of solid financial results as contract sales and revenue growth increased significantly on a sequential basis as well as over the prior year third quarter period. Average selling prices increased over 10% in the third quarter from the 2011 second quarter and up over 18% compared to the 2010 third quarter.” (Third-Quarter Financial Results, Xinyuan Real Estate Co. Ltd, November 13th, 2011)
Find more stocks on the SpeculatingStocks homepage.
Comments:
