Sino Agro Food Inc (fka SIAF)

[RealDutch]

What are you thoughts on why the stock is not trading at a higher P/E?

You can point to many things, the Chinese sector being hit hard since late 2010, being on OTC, and diluting the stock to finance growth up until September 2014. The last one making things a lot worse and giving people the wrong impression. The stock is still recovering (healing) from all of these things.

But the answer is really locked up in your question. Why are you asking this question instead of simply buying the stock? You are not alone. People believe if it's too good to be true then it probably is. That's when they stop doing DD and believe what they want to believe. Except for a few who think the market could be wrong.

This works the other way around as well. People have no problem buying overvalued stocks, even garbage, based on hope and false beliefs.

There is a saying that in the short term the market acts like a voting machine and in the long run it acts as a weighing machine. Well, up until September 2014 the company didn't deserve a lot of votes. Because they were recklessly growing this company at the expense of shareholder value.