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John Sheehy

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  • China Xiniya Fashion Store Visits Reveal Efficient Business Model And Long-Term Opportunities [View article]
    I understand the source of your information and I understand your math, but I think that number is irrelevant. All outstanding ADS are available for trading at the NYSE, regardless of whether they were issued in the IPO or converted from ordinary shares by pre-IPO investors. Just look at the daily turnover for the past year. There is obviously enough liquidity for execution of a new buyback plan.
    Mar 7 05:06 PM | Likes Like |Link to Comment
  • China Xiniya Fashion Store Visits Reveal Efficient Business Model And Long-Term Opportunities [View article]
    The 20-F says there are 21mm ADS:

    " As of December 31, 2012, we had 227,716,692 ordinary shares outstanding, including 85,399,472 ordinary shares represented by 21,349,868 ADSs. All ADSs are freely transferable without restriction or additional registration under the Securities Act of 1933, as amended, or the Securities Act. "
    Mar 7 10:08 AM | Likes Like |Link to Comment
  • China Xiniya Fashion Store Visits Reveal Efficient Business Model And Long-Term Opportunities [View article]
    It is my understanding that the CEO felt that the completed share repurchase plan was unsuccessful because it did not lead to an increase in the price of the stock. I disagree with that logic and have communicated my perspective directly to the company. I urge other shareholders and interested investors to do the same.
    Mar 7 09:32 AM | Likes Like |Link to Comment
  • China Telecom's $400mm Medical Smartphone Agreement Is Great News For China Techfaith Wireless [View article]
    There's a more detailed story in the current issue of The Economist:
    http://econ.st/1frkOGo

    Excerpt:

    "Many experiments are already under way in emerging markets, where new mobile devices and apps are helping relieve pressure on poorly financed and ill-equipped clinics and hospitals. But the biggest prize is America, which splashes out a breathtaking $2.8 trillion each year on a health-care system riddled with inefficiencies. The prospect of revolutionising the way care is delivered there is inspiring entrepreneurs. Mercom Capital Group, a consulting firm, reckons that of the $2.2 billion venture capitalists put into health-care startups last year, mostly in America, $564m went to m-health businesses.

    The m-health market can be broken down into two broad categories. First, there are the apps and appliances used to monitor the wearer’s physical fitness. Firms such as Nike, Fitbit and Jawbone make wristbands and other wearable gadgets full of sensors that let people record their performance, and their calorie-burning, as they pound the pavement or sweat in the gym.

    Second, other apps and devices link patients with a medical condition to the health-care system. Last month Google said it was working on a contact lens containing a tiny wireless chip and sensors that would measure and transmit the glucose levels in a diabetic patient’s tears. In December Apple was granted an American patent on a means to incorporate a heartbeat sensor into its devices."
    Feb 4 09:50 AM | Likes Like |Link to Comment
  • China Telecom's $400mm Medical Smartphone Agreement Is Great News For China Techfaith Wireless [View article]
    Media reports say Apple and Google have been meeting with the FDA to discuss mobile medical devices.

    http://nyti.ms/1esPKrZ

    http://bloom.bg/1esPLMu

    This suggests that they see a large potential market for mobile health monitoring devices. If Lifewatch IP is valuable then it could be acquired this year.

    What does this mean for Techfaith? At this point I don't know.
    Feb 3 10:44 AM | Likes Like |Link to Comment
  • China Telecom's $400mm Medical Smartphone Agreement Is Great News For China Techfaith Wireless [View article]
    Thanks for your comment.
    My understanding is that the first version produced in 2012 took too long in getting regulatory approval as a medical device. By the time it was approved the phone specs were unappealing. With that experience the companies have tried to streamline the process. It will be an ongoing challenge, but it will also limit competition.
    The health phone attracted favorable publicity and recently won an innovation award:
    http://bit.ly/1mXrwa1
    But consumer acceptance is the real test and that's why I think the China Telecom agreement is a significant development.
    Techfaith is also getting a lot of publicity through promotion of a ruggedized phone in conjunction with The Travel Channel (a satellite network):
    http://bit.ly/1mXrv5Y
    These niches (health and sports) should be complimentary. Each success enhances the reputation of the brand in the Chinese market.
    Jan 29 09:55 AM | Likes Like |Link to Comment
  • Concord Medical: Special Dividend And 30% Upside Potential On Valuation And Growth [View article]
    Note that the stock has gone ex-dividend today (1/16). I think your article should have noted that anybody buying the stock today will NOT receive the dividend.

    The dividend reduces the company's book value by $32mm so book value per ADS is about $6.93 after the dividend.
    Jan 16 10:24 AM | Likes Like |Link to Comment
  • China Xiniya Fashion's CFO Answers Questions About The Recently Concluded Sales Fair And Current Industry Environment [View article]
    I never looked at these before so I have no insides, but I can share my initial superficial insights.

    Kinghero looks like a disaster so any estimation of "value" would be highly speculative:
    http://bit.ly/19XIlik

    MingLe is a sportswear company so most people would not describe it a competitor of Xiniya or any of the other companies shown in the table above. Nevertheless, it does seem interesting. No red flags are obvious to me, but it would take me quite a while to get comfortable with several issues: 1) how is MingLe reporting such good results when competitors are struggling? 2) Can MingLe succeed with a business model focused on selling at lower prices in smaller markets? 3) why did they list in Germany (requiring a trilingual German-English-Polish prospectus)?
    Jan 6 04:13 PM | Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    This will just be my personal opinion. As mentioned previously, I think the company needs to improve its investor communication and relationships.

    Everybody can see that the company has raised a lot of money in recent months on less than ideal terms ($400mm of senior debt and $100mm of equity), but where is the benefit?

    When I met Tom Gurnee in July he said the company's biggest concern and management focus was the need to get more land. In the middle of 2013 the company had only one project (Jinan) with substantial salable inventory. Deals completed in recent months mean that XIN will have about nine projects for sale in 2014, a huge increase. Most of those projects are in strong markets (Zhengzhou, Suzhou/Kunshan, and Jinan) where the company has a well-established brand reputation.

    My guess is that 2014 sales and income guidance will demonstrate a large payoff from this year's fundraising and the stock will respond favorably.
    Dec 10 08:33 AM | Likes Like |Link to Comment
  • China Nepstar: Now Is The Time To Buy, Upside Ahead [View article]
    The company pays dividends far in excess of cash flow so they are return of capital rather than yield.
    Dec 10 08:10 AM | Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    Williamsburg is going to be a big win for Xinyuan. The location seemed marginal at the time of acquisition, but it will be prime when construction is completed because that area is developing so fast. The Domino site plan really enhances the appeal of 421 Kent. Also, it seemed like Xinyuan was stuck with the large unit sizes as a legacy of the project history, but 3+ bedrooms has been the hottest segment of NYC real estate over the past year.
    Dec 9 08:35 AM | 2 Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    100+ pictures of every Xinyuan development are online at Soufun. For example, here is the Xinyuan colorful Garden: http://bit.ly/1bwbWQz
    And Xinyuan International City Garden: http://bit.ly/1bwbX6O

    These Soufun pages are navigable with Google translate and provide a helpful way for investors to see XInyuan from the perspective of real estate shoppers and residents.
    Dec 9 08:30 AM | 2 Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    The company website looks totally functional to me:
    http://bit.ly/1aDTzZn
    Nov 22 03:16 PM | Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    I don't think I have any special information or insight into what happened. I described my thoughts a few comments ago. A new CEO, a new strategic/financial partner, and a new CFO all arrived at the same time. It didn't work out for Kevin Wei.

    I think the stock price drop was an over-reaction. Gurnee didn't speak or read Chinese so in some ways Helen Zhang has already been a sort of deputy CFO for several years.

    As I mentioned on 9/14, I think one area where a new CFO could/should bring some improvement is in the company's capital market relationships. I hoped Kevin Wei would be capable of that. Without him, who will accomplish that?
    Nov 18 06:49 PM | Likes Like |Link to Comment
  • Xinyuan Real Estate Property Visit Highlights Promising Outlook [View article]
    I don't know what happened with the CFO. It seems possible that the combination of a new CEO (hired from outside), a new CFO (from outside), and a major new strategic partner/shareholder created an uncertain situation. Either the CFO job ended up being different from what Kevin Wei expected or Kevin Wei ended up being different from what Xinyuan expected.

    It's worth remembering that XIN has successfully passed several due diligence processes this year (annual audit, Fitch ratings, and TPG investment).

    My impression was that Gurnee was always very deferential to the real estate and business judgment of Chairman Yong Zhang. It may be that Kevin Wei expected to have more active involvement in business decisions. On the earnings cc Kevin Wei answered all questions himself without seeking any contribution from the controller, CEO or Chairman. Kevin Wei delivered his answers with confidence, but the content seemed vague and uninspiring. There was certainly room for improvement.

    My guess is that Kevin Wei's sixth month term as an "advisor" is just a polite way of describing his severance pay.
    Nov 15 09:25 AM | 2 Likes Like |Link to Comment
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