XIN part 2

M,

You’re correct. But, to be honest, that doesn’t matter much. It’s cool, but look at the liabilities. The liabilities are 4x their cash. Sales figures for properties in china are really bleak right now. SELLL SELL SELL! Is what they’re saying. Mean’s a great buying opportunity for those who think that there will continue to be some level of construction in china over the next 5 years. The downside to XIN is that it does high turnover. The upside is that it operates in Tier II.

The way I figure, if you write off all their property under development down by 50% (worst case scenario) about 300, and add cash about 160,

You’ve got assets backing liabilities still. Doesn’t seem nearly as risky as it’s priced. I’m not selling my shares, but I’m not buying more. It’s in my top 4 positions, which is good enough for me. (I probably should be buying more and would be if I wasn’t playing with college money.)

Glen

From: sagges Sent: Thursday, October 09, 2008 10:53 AM To: gbradfo Subject: XIN

Glenn,

Still hanging in with XIN?

Unless I am reading the balance sheet incorrectly their cash position is twice their market value.

I understand the total instability of the world markets but this looks like a ridiculous opportunity.

M