Phoenix New Media: Yidian Sale Delay

Phoenix New Media announced that closing of its $448mm sale of 32% of Yidian Zixun has been delayed (LINK) "The Company sent a completion confirmation letter to Run Liang Tai on May 31, 2019 to confirm the satisfaction of all of the Closing Conditions. Run Liang Tai, however, disputed the satisfaction of certain Closing Conditions. The Company is in … Continue reading Phoenix New Media: Yidian Sale Delay

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May 2019 NBS Price Data in Leading Chinese Cities

China’s National Bureau of Statistics (NBS) released its monthly report on home sale prices (LINK).  The prior segregation of “15 Hot Cities” in the NBS report has been removed and suggests that price restraints have diminished in importance as a policy goal.  It is still useful to monitor trends in these major markets. Intense market restrictions … Continue reading May 2019 NBS Price Data in Leading Chinese Cities

Northstar Realty Europe: Strategic Alternatives Review Deadline Approaching

Northstar Realty Europe is approaching the 6/30 deadline for conclusion of its review Sale or liquidation of the company should deliver $17-18.50 to shareholders High overhead and small scale make it unrealistic for the business to continue in its current form Interests of management and major shareholders are aligned in favor of a transaction Northstar … Continue reading Northstar Realty Europe: Strategic Alternatives Review Deadline Approaching

Xinyuan Real Estate Welcomes New CFO, Again

Ancient Egypt was struck with 10 plagues and Xinyuan Real Estate will now face it's 10th CFO during its time as a public company.  For comparison the New York Knicks had only seven head coaches over the same time period. CFO Period Longgen Zhang 2006-2008 Frank Ng 2008-2009 Tom Gurnee 2009-2013 Kevin Wei 2013-2013 Helen … Continue reading Xinyuan Real Estate Welcomes New CFO, Again

Phoenix New Media: Special Dividend, Strong Asset Value, Strong Brand, Weak Profitability

Phoenix New Media (6/6 closing price = $3.45) is selling a majority of its strategic investment in Yidian Zixun for estimated net cash proceeds of US$409mm ($5.62/ADS). The company expects to pay a special dividend of 15-25% of proceeds ($0.84-$1.40/ADS) The company will retain net cash + ST/LT investments after the dividend of $552-$593mm ($7.56-8.12/ADS) … Continue reading Phoenix New Media: Special Dividend, Strong Asset Value, Strong Brand, Weak Profitability

Trade Peace, When The Time Is Right

Daily discussion of trade war tactics has obscured the objectives that could be realized from an agreement.  I believe a mutually beneficial outcome is possible, but political pressures could make it more difficult to conclude a deal. This review is not intended as a forecast, but a summary of issues and related risks that provides … Continue reading Trade Peace, When The Time Is Right