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Market Stance: BULLISH (since July 1, 2016)
* An average of managed accounts, net after all commissions and fees.
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* Buy prices shown are net after commissions and fees.
Today, Monday, August 15, 2016, I bought XIN, for both client and my personal accounts.
Xinyuan Real Estate Co., Ltd. is a China-based real estate developer of residential projects that include multi-layer and high-rise apartment buildings.
Here's why I bought this stock:
+ Earnings news: Last Friday, Aug 12, after the close, the company announced results for the quarter ended June 30. Earnings came in at 39c per diluted share (vs 27c last year). Revenue was up 37% to $376.6 million.
Analysts' estimates are not available.
+ Breakout: The stock jumped 9% on Friday on very heavy volume. This was a breakout from a 4-month range to a new 32-month high.
+ Volume spike, mostly on the buy side: Friday's volume was more than 7 times average, and set a 12-month record.
+ Excellent recent sales growth. Here are the quarterly year-to-year sales growth rates from the last four quarters, in chronological order: +89%, +14%, +41%, and, most recently, as cited above, +37%.
+ Mostly excellent recent earnings-per-share growth. Here are the quarterly EPS figures for the last eight quarters:
Sep 15 vs Sep 14: 31c vs 4c Dec 15 vs Dec 14: 26c vs 30c Mar 16 vs Mar 15: 9c vs 6c Jun 16 vs Jun 15: 39c vs 27c
+ Valuation: At 6 times next year's estimated earnings, the stock may still be, even after Friday's price jump, attractively priced.
+ The company's industry group ("Bldg - Residential/Commercial") is ranked #67 for relative strength out of 197 industry groups tracked by Investor's Business Daily. This ranking changes daily, and it has been generally rising over recent weeks and months.
+ The stock's 200-day moving average is rising, indicating a long-term uptrend.
-KD, Monday, August 15, 2016
* Buy and sell prices shown are net after commissions and fees. This means that the gain/loss shown is also net after transaction expenses.
Today, Monday, August 15, 2016, I sold IVV, for both client and my personal accounts.
I sold IVV in order to pay for XIN. We remain fully invested.
-KD, Monday, August 15, 2016
* Buy prices shown are net after commissions.
** Current prices are at least 20 minutes old.
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