Kirin International Holding Inc (OTCMKTS:KIRI) Climbs To Record Highs
Back in May the stock of Kirin International Holding Inc (OTCMKTS:KIRI) was sitting at a low of 25 cents per share. At the end of yesterday’s trading however after adding another 16% to its value the ticker stood at $2.93. During the session KIRI moved to a new record high of just below $3 per share.
Even with the stock having appreciated so much some investors could claim that it is still undervalued. And they might be right – KIRI’s financials are definitely not those of a typical pennystock company. They finished the first quarter of the year with:
• $10.2 million cash
• $363 million total assets
• $308 million total liabilities
• $22 million revenues
• $1.45 million net loss
It is true that KIRI reported a sizable net loss but according to the latest earnings estimates released by the company that may no longer be an issue. KIRI projects that for the first half of 2015 after tax net income will exceed $2 million while the net income for the whole year will reach $10 million.
Despite the truly impressive balance sheet investors have been apprehensive to put their trust in the company for quite a while and with a good reason. Kirin is a non-state-owned real estate development company focused on residential and commercial real estate development in “tier-three” cities in the People’s Republic of China. Any pennystock that operates in China is immediately viewed as extremely risky. The fact that KIRI don’t have an official website despite the millions in cash and revenues doesn’t help their credibility either.
Well, it should be noted that according to the LinkedIn page of the company KIRI actually have an official website – http://www.cathaykylin.com/. As you can see it is carries a different name than KIRI not to mention that the last news article published on it is from August 2014.
The red flags don’t stop there. Since the start of 2015 KIRI has been touted by pump newsletters on several occasions. The last wave of emails came on July 20 and 21 sent by Stock Publisher, Penny Stock Crew and Stock Freak. At least the involved pumpers disclose receiving no compensation for their services.
Although the risks around KIRI are significant they may soon become a lot less scary if the company is successful with its plans to move out of the OTC market. On July 30 Kirin announced that an initial listing application to the NASDAQ Stock Market has been submitted. Uplisting to a national exchange will definitely boost the company’s image and will alleviate at least some of the concerns investors might be having.
For now though approaching the stock still requires caution. KIRI has appreciated significantly in the past few sessions and chasing after the stock may be risky. Do you own due diligence before putting any money on the line.
