Thursday, June 26, 2008

Xinhua Finance - XFML - Stock Update -- CEO and Independent Directors Purchase Company Shares

I'll admit... I jumped on the "bandwagon" of Chinese IPO's in early 2007, through the form of Xinhua Finance (XFML). I analyzed the stock as I did most my other Chinese picks at the time. With little history on the company, horrendous management (at the time), little clue on how to deal with press and transparency. What So as a result...

(If you missed my first post on XFML, click here to check it out.)

I made the investment with a simple macro-economic analysis of the Chinese market, believing the stock's debut on the NASDAQ at around 11-12/share as a fair price. After a year of turmoil both within the company, in Asian markets, and with global markets around the world in general the stock has sat and done little except inch it's way down to the current price of $2.66/share. The "good times" in 2006 had gotten to me as they had many people playing Asia.

Good news is on the horizon... just in time for the Olympics which scares me a bit, especially considering I'm sure XFML, which has a decent amount of debt, is hoping the Olympics boost their "brand," and that the advertising projects it has been hired to do for the games actually bring in some solid revenue... which would also help their share price.

Raising money in the current market would be hard. XFML suffered some bad publicity earlier in this year, do your own research if you want details since much of it in my opinion was based off unfounded facts, over-exaggerated and politically motivated.

They hired new PR, reshuffled their board and management, have revamped their main financial news page:, acquired some nice companies for decent prices this year, saw revenues rise in all their current operations (including print media), got some nice projects for the Olympic games, and are about to expand into sports media-- a largely untapped market in China.

Now to top it all off, this morning in my mail box I was sent a pleasant news break on the company, informing me Freddy Bush, the CEO and Independent Directors Purchased Company Shares due to their feeling of the company "being undervalued." Generally good news.

Not saying go out and buy, this website represents my opinions, commentary and analysis alone and not the actual course of events that will play out. Please invest with caution.

For full article regarding the purchase made by the CEO and other directors click here for Yahoo Finance's link to it. I'll copy the companies performance once again of XFML since it's debut last year.


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