China Unlimited

[RealDutch]

RD, regarding TW spin off, when we receive the dividend shares for TW will you buy SIAF shares with it or not?

You can't sell your Triway stock dividend until we get a listing in HK.

Also the spin off doesn't fundamentally change SIAF (except for the loss of TW) since S will continue to have his A-shares and we will continue to be an OTC stock.

I'm targeting 7,000 SIAF shares on the ex-date. Which will give me roughly 5,800 Triway dividend shares. They will be worth 5,800 x $3.50 = $20,300.

I expect SIAF to drop to $5 from $7 on the ex-date.

The thing is, I may run into some cash flow problems later this year. So I may have to put up those dividend shares as collateral for a (friendly) loan. Until we get he HK listing. Also, I may have to sell up to half of my SIAF shares, which isn't really a problem as long as I get at least $5 for them.

As for the stock performance of SIAF post spin-off, I think we are dependent on the progress they make with the SJAP carve-out. And pre-IPO financing. The stock could be dead in the water for up to 6 months.

None of this matters much if HERB shows us the money. We can buy as many SIAF shares as we want. That would probably solve all of my problems.

So I think that's the plan for now, for me.

If HERB doesn't show us the money, say, by late May, I may have to go all-in on SIAF.

If SIAF doesn't rally to $7 in the coming months.... well then I can get the shares cheap.