Jaime,
I am not concerned. The markets are falling and those perceived as the riskiest are sold off the fastest. XIN is perceived as risky because it’s real estate, it’s in china, and it’s small (compared to other companies that most people trade). I’m not really concerned. The concern that usually comes up as prices go down is a private takeover. There are a lot of companies trading unreasonably cheap. This is one of them. Selling a brick of gold at $1 just cause everyone else is never made sense to me.
I don’t think a private takeover is likely, because I imagine that most of the owners and management of XIN realize that it’s actually a flourishing company. In this kind of market, I try to allocate into the cheapest companies, which keep getting cheaper. But, I came in with a lot of “stalwart” companies. I have a few left to push into the small caps at huge discounts, and will do so over time.
I’m not sure about delisting. I just don’t really care where it’s traded. I expect it will be traded somewhere.
Glen
From: salc
Sent: Thursday, October 09, 2008 8:29 AM
To: gbradfo
Subject: XIN
Hi Glen,
I have been watching XIN get hammered in the last month. I firmly believe the stock is worth much more that the current price and will probably quadruple over the next year.
My concern is that if it trades lower, is it in danger of being “delisted” by the exchange?
What are your thoughts?
Jaime