It is a paradox, but it certainly applies for China HGS Real Estate Inc.(Nasdaq:HGSH). The decline in the stock price should be of serious consideration, given that it has been going on for an year and a half now. The stock used to trade just below $5 per share, yet its current price is below $2. All that happens when there is a 10-Q with optimistic results in place. 
Friday was no exception. A little less than 12k shares exchanging hands, making up for a 8% decrease in the price, the session closing at $1.7 per share. It is important to mention that the daily trading volume rarely gets above 10k shares. The situation might be a bit different today, however. This Sunday, there was some promotional activity in place. Two newsletters came out costing $10k, which might affect the session today. Whether the effect would be positive for the stock price, is another matter entirely.
It is not the very decline in the share price, but the factors affecting it, that are particularly interesting. One example is the balance sheets, in the quarterly statements in particular. The latest one covering the second quarter of 2011 came out earlier in August. Among other figures, it includes the following:
- $2.6 million in cash; [BANNER]
- $53.8 million in total current assets;
- $28.2 million in total current liabilities;
- $4.9 million in accumulated other comprehensive income;
- $12 million in sales;
- $6.4 million in net income;
Positive figures all the way. Interesting, given some reports of the Chinese real estate market. Having this in mind, it is uncertain what exactly drives the price down month after month. In terms, such uncertainty in place makes it harder for an informed investment decision to be made. A situation that might benefit short-term speculative investors, yet it could hardly appeal to long-terms ones.
