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John Sheehy  

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  • Jinpan Is Over 80% Cheaper Than Comparable China-Listed Companies [View article]
    It takes time and experience to make an informed judgment about those issues and that's one of the reasons I did not present a clean recommendation. I believe strongly that every investor should do their own research and know what they own. When I have lost money in the past I always regretted the work that I didn't do. For people who have done work on this company, I hope the article included some new information that made it worth their time.

    "Is the actual ownership of the Chinese operating company through an offshore shell that actually has poor - if any - legal recourse against the operating company."

    As mentioned in the article, Jinpan is registered in the BVI.

    "is there anything that should assure investors that this Chinese is company is different than so many frauds that came before it?"

    I believe so and I believe that plenty of the information in the article supports this belief, but I said right at the start that I was not offering a complete analysis of the company.
    Jul 2, 2015. 07:27 AM | Likes Like |Link to Comment
  • Jinpan Is Over 80% Cheaper Than Comparable China-Listed Companies [View article]
    Thanks Bill,

    I appreciate your comment. Can you share any insights into the factors that helped the company grow so much during your time as a Director?

    John
    Jul 1, 2015. 07:32 PM | Likes Like |Link to Comment
  • Jinpan Is Over 80% Cheaper Than Comparable China-Listed Companies [View article]
    Hi pone,

    If those are your assumptions then I suggest that you not spend any more time on this stock.

    Interested investors should read Jinpan's Annual Report, Annual Financial Statements, Investor Presentation, and material on the International & Investor Relations Website.

    - John
    Jul 1, 2015. 06:55 PM | Likes Like |Link to Comment
  • Jinpan Is Over 80% Cheaper Than Comparable China-Listed Companies [View article]
    Hi J,

    Due to the inefficiencies of Chinese finance, working capital usage tends to be higher than in the US. In particular, municipalities and state-controlled enterprises take advantage of their perceived govt guarantee to pay slowly. Jinpan's AR as a percentage of trailing four quarters of sales (to smooth seasonal fluctuations) has actually come down a bit over the past two years.

    Jinpan achieved tremendous long-term growth while raising very little money from share sales (just the $7mm IPO and a $25mm secondary in 2006). Obviously cash generated from operations was reinvested in the business, but it should be noted that after completing the expenditure for the Guilin facility, the company did generate significant positive free cash flow in 2013 and 2014.
    Jul 1, 2015. 12:12 PM | Likes Like |Link to Comment
  • A Detailed Look At China Techfaith's Real Estate Assets [View article]
    Hi Josh,

    "Disclosure: The author is long CNTF"

    My understanding is that CNTF may experiment with a flexible workspace environment within its Hangzhou site. SOHO China is already doing something like this:
    http://bit.ly/1K07ZV9
    It's like being at Starbucks, except the coffee is free and you pay for the chair.
    Jun 18, 2015. 07:54 AM | Likes Like |Link to Comment
  • Xinyuan Real Estate: Williamsburg Project Site Visit [View article]
    New $700mm complex going up right across the street from Oosten:
    http://bit.ly/1Bje3XE
    Jun 17, 2015. 01:09 PM | 1 Like Like |Link to Comment
  • Polaris Infrastructure Inc. Looks Much Better Now [View article]
    Brilliant Resources was the largest investor in the placement. It bought 1.25mm post-split shares at $8.
    May 31, 2015. 11:14 AM | 1 Like Like |Link to Comment
  • China Cord Blood: Attractive Buyout Target With 22.4% Upside And Minimal Bloodletting [View article]
    Looks like these kids dropped off their homework and rushed away before they could face any questions.

    A simple lesson: it's easier to find undervalued stocks in emerging markets, but it's harder to execute a buyout deal.
    Apr 20, 2015. 09:11 AM | 2 Likes Like |Link to Comment
  • China Cord Blood: Attractive Buyout Target With 22.4% Upside And Minimal Bloodletting [View article]
    Your calculation makes this appear attractive, but

    1) Do you believe that the current shareholders would be willing to sell for just a 25% premium? What role do you see for Golden Meditech? If a buyout were attractive, then why wouldn't the current large shareholders just do it themselves? Why would the CEO give up his controlling position in order to work for a new PE investor?

    2) Can you cite any Chinese companies as examples of the financing (rate and gearing) that would be available for an LBO?

    3) Did you examine whether the company's RMB cash is subject to restrictions on its availability to repay the offshore buyout financing?
    Apr 16, 2015. 03:35 PM | 2 Likes Like |Link to Comment
  • Yanzhou Coal: Chinese Government Policy Helps, But It's Still An Expensive Stock [View article]
    1 ADS is convertible into 10 H-shares traded in Hong Kong. Your article never mentioned the Hong Kong listing. The H-shares are economically equivalent to the A-shares but not convertible so that's why there are often valuation gaps. In the case of YZC the difference between the valuation in NY/HK vs Shanghai remains large.
    Apr 14, 2015. 04:41 PM | Likes Like |Link to Comment
  • Yanzhou Coal: Chinese Government Policy Helps, But It's Still An Expensive Stock [View article]
    The title of this article is factually wrong. Yanzhou A-shares closed at 15.62 RMB yesterday. 1 ADS (traded in New York) as YZC equals 10 A-shares. So today's YZC close is at a 58% discount to the A share. The valuation gap has not closed.

    Also the fundamental outlook for this company is poor because coal demand in China is falling. Coal prices in China are down 14% YTD.
    Apr 14, 2015. 04:10 PM | 1 Like Like |Link to Comment
  • China Ceramics' (CCCL) CEO Huang Jia Dong on Q4 2014 Results - Earnings Call Transcript [View article]
    There were some questions during the conference call about the accounting for the trading loss. A detailed explanation of the loss and its offset is in my CCCL article from December:
    http://seekingalpha.co...
    Apr 14, 2015. 03:15 PM | Likes Like |Link to Comment
  • Xinyuan Real Estate - 2014 Sales Above Expectation, Recovery Underway [View article]
    There is a timing difference between Sales and Revenue. "Contract Sales" are recorded when contracts are signed. Income statement "Revenue" is recognized over the life of the project in line with related expenditures.
    Feb 20, 2015. 03:53 PM | 1 Like Like |Link to Comment
  • Jinpan International Withdrew Buy-Out Offer - Doesn't Change The Fact The Stock Is Undervalued [View article]
    Try this link ...

    http://bit.ly/1L8OYPz
    Feb 17, 2015. 12:13 PM | Likes Like |Link to Comment
  • Jinpan International Withdrew Buy-Out Offer - Doesn't Change The Fact The Stock Is Undervalued [View article]
    Hi Bill,

    Thanks for sharing your insights and congratulations on your win here.

    How do you think investors should monitor the progress in Jinpan's business? You mentioned that results are a product of how well the company performs internally and short-term market forces which are beyond the company's control. What are good measures of the internal performance? Are there ways that investors can independently monitor the market forces most relevant to Jinpan's business?

    To illustrate those points, what do you think of Jinpan's 3Q results?

    - John
    Jan 15, 2015. 06:12 PM | Likes Like |Link to Comment
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