Regarding XDL

Did you see XiDeLang (XDL)'s trade today?

Actively traded early in the morning. Its opening price was 40.5 sen and it surged to 43 sen. And then it continued to trade much lower all day and it closed at 37 sen. Down some 8.6%.

And yes XDL is another of them Chinese listed stock on Bursa Malaysia.

And like other Chinese listed stocks, XDL have 'decent' earnings.

And like other Chinese stocks, XDL had quite a lot cash. 98.380 million ringgit according to its last reported earnings.

And like other Chinese stocks, XDL did not have much borrowings. Just 19.3 million ringgit.

And like other Chinese stocks, XDL trades rather lowly versus its earnings. Early this year XDL was trading around 50 sen. Its eps then was around 19 sen. Yes it was trading around a PER valuation of around 2.6x.

How?

Invest in this stock just because of low PE?

And not forgetting, Richard Cranium reminds me of of this posting: Yusli: Them Chinese Stocks Are NOT Poor Quality

Now here's an interesting thing about XDL.

First, XDL last reported earnings: Quarterly rpt on consolidated results for the financial period ended 31/3/2011

Remember cash balances is said to be some 98.3 million ringgit and total borrowings is said to be 19.3 million ringgit.

From the above, we can see that XDL pays a quarterly finance cost of 142 thousand. (remember XDL's total loans is around 19.3 million)

Then I look at the cash flow.

Interest received is ...............................73 thousand?

Huh?

Remember cash balances is said to be some 98.3 million ringgit and total borrowings is said to be 19.3 million ringgit.

So how come.... financial cost is more than its interest income?

Er......

then I scrolled down....

Err....as can be seen, XDL said it has some 98.370 million ringgit in cash and out of that 98.370 million only some 967 thousand is placed as deposits with financial institutions.....

I then .... closed the pdf file.

End.


** ps. I don't know how XDL will trade in the future. Yup.. not interested. **