Sino Agro Food Inc (fka SIAF)

[slyestjester]

Rnilsson--

Some measure of ROE, ROA, or return on inventory + prop, plant, and equip.
is always the first thing I look at to get some idea of the quality and management of the business.

What's striking to me about SIAF in this regard is twofold: 1) Agricultural businesses tend to have ROE in the single digits and here we are in the 30's% 2) The consistency of returns at about that level year after year even with all the permutations that the businesses have undergone.

As long as SIAF can get returns of that nature consistently, the pure mathematics of the business would suggest it's true value lies at 3-4x book value or even higher. So whether you approach value as a multiple of earnings or from the perspective of book value we can arrive at a figure of over $100/sh. even now.