Xinyuan Isn't Being Rewarded for Earnings

Since we are in the midst of earnings season, my shopping list is currently focused on companies reporting strong earnings and not being rewarded for it. This morning Xinyuan Real Estate (XIN) reported strong numbers across the board. The company saw contract sales increase 72%, revenues jump 44%, and gross profits increase 44%. Earnings of $0.47 per share were a huge leap from the $0.18 it earned a year ago and the $0.22 it earned last quarter. For the year, XIN earned $0.94 giving it a P/E under 7.

The first quarter will be slower mainly due to the Chinese New Year. Also, XIN faces ongoing battles with the Chinese government seeking to slow real estate. If the real estate restrictions are eased or removed, XIN's top and bottom line should skyrocket. The company has moved outside of China though, with several developmental projects in the United States mainly focused on New York....134 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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