Xinyuan Real Estate: The Path Is Becoming Clearer

Summary:

- Xinyuan's stock has performed well so far in 2019, but I still believe that XIN shares have room to run.

- Xinyuan reported strong Q4 2018 results that were well above the numbers that were reported in the year-ago quarter.

- I am long Xinyuan, and I plan to get longer in the near future.

Xinyuan Real Estate ($XIN) has been one of the best-performing stocks in the R.I.P. portfolio. The stock is up over 28% this year, and it is outperforming the S&P 500 (SPY) by 17 percentage points.

While there is definitely risk to the story, I believe that Xinyuan has the potential to be a great long-term investment at today's price. Moreover, it helps the bull case that the company's most recent operating results showed that Xinyuan is well-positioned for 2019.