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Hi Coattail,
I bought 30 000 shares in Nuin today at 73.8 cents. I have been following this stock for a short time and decided to take a bet. My main holding is SIAF.
Same here. I put in a bid through my local broker Nordnet at 60 cent. The order did not get filled although trades were made at 55 cent after my order was in the market. I got 3 857 shares at 60 cent.
NJM, if I remember correctly it was in a meeting in Stockholm in September 2013.
Challe08, I have heard that Solomon on a direct question has said that the real ownership of SJAP is 75%. However, as this information has only been stated by Solomon and the company has not officially confirmed this number, one should perhaps not take it for granted.
If we assume that the number is correct, I would guess that SIAF will claim that they had some sort of option to acquire 30% of SJAP from Garwor at a symbolic price.
Look, SIAF is buying back shares. Although, probably a very modest numbers of shares.
I hope this link Works, https://online.paretosec.com/static/files/EMD14/15%20Sino%20Agro%20Food%20Inc.pdf
I attended the conference, and Solomon presented. As usually he was enthusiastic but rather unstructured. He did not go through the presentation, but just talked strait from heart, while Erik Ahl tried his best to find a suitable slide that covered the area he was talking about.
Solomon got a question from the audience. An investor asked how the strong growth had been financed. Solomon did not reply to the question, but instead said that future growth would be financed. He had several financing proposal on his desk. From what I understand there were some one on one meetings with fund managers as well.
He menthioned one new thing though, that they will try to grow oysters as well.
Herb really looks cheap, but can we trust the numbers? What makes me sceptical is that reported sales and cost of sales increased by exactly the same percentage for all the different subsidiaries. Surely, that can't be the case?
One could argue, that they are sloppy in their quarterly reporting (10Q) and divide the growth in total sales and cost of sales with the same percentage to the different subs. However, the same thing is true in the annual report (10K), where the numbers have been audited.
To me SIAF is a more safe bet.All the same, I will probably buy a small position in Herb and hope for a rally.
emptyone,
I share your thoughts. Another reason for waiting with a PR is that SIAF has failed twice before when announcing listings. This time I expect that they will be sure that everything is in order before they announce a listing on another Exchange.
RD,
I find it positive that he is presenting SIAF at the Conference. He needs to spread the Word about SIAF to as many People as possible. It is not enough, that we here on IHub discuss how undervalued the company is. Furthermore, I would not be too surprised if manageme were to meet with a Certified Adviser at the same time for a possible listing at First North.
Orreborren, here is the program for the Emerging Markets Day. I am planning to attend the Conference. Hope to see some of you there.
From
To
Stora rummet
08:00 08:30 Registration / Coffee
08:30
08:45
Introduction Pareto Securities
Mats Carlsson, CEO
08:45
09:15
East Capital Marcus Svedberg, Chief Economist
09:15
09:45
Tethys Oil Morgan Sadarangani, CFO
09:45
10:15
Etrion Corporation Garrett Soden, Interim CFO
10:15 10:30 Coffee break
10:30
11:00
Turquoise Partners Ramin Rabii, CEO
11:00
11:30
Scania Per Hillström, Head of Investor Relations
11:30
12:00
Cavotec
Ottonel Popesco, CEO
12:00
12:30
Trond Omdal on Kurdistan & Iraq
Analyst, Pareto Securities AS
12:30
13:00 Lunch
13:00 13:30
Prosperity Capital Management Mattias Westman, Founding Partner
13:30
14:00
RusForest
Matti Lehtipuu, CEO
14:00
14:30
Vostok Nafta
Per Brilioth, Managing Director & Board Member
14:30
15:00
Lucara Diamond William Lamb, CEO
15:00 15:15 Coffee break
15:15 15:45
Ekosem-Agrar GmbH Wolfgang Blaesi, CFO
15:45
16:15
Black Earth Farming Richard Warburton, CEO
16:15
16:45
Sino Agro Food Inc.
Solomon Lee, CEO
16:45
17:15
Kernel Yuriy Kovalchuk, Corporate Investment Director
17:15
Many thanks RD. By the way, congrats with the puts in Amazon and Netflix.
RD, I can't find the Q2 report from HERB. Have you seen it?
Do you think they have gone dark?
AIK, I made the same reflection on that statement.
When new shares have been issued, equity in the Balance sheet increase. If not assets increase or liabilties decrease (accounts liable) at the same time then the balance sheet would not balance.
andgus, very interesting information. Where on did you find the info. I am a client of Nordnet Norway, and would like to check if they have the same information on their website.
NJM, Oh I see. You mean that part of capex and increase in working apital that needs to be funded by external funds. My mistake.
NJM, I think your numbers for Capex sounds very low. When looking at my spreadsheet over the CF statement I can see that during the latest 18 months CAPEX was 112 MUSD, increase in working Capital (mainly accounts receivables) was 51 MUSD. Most of these Investments were financed by internal funds, but 26 MUSD was from printing New shares.
Going forward, the big question is how the Mega Farm will be financed. Partner A (Chinese business men) shall Finance 30% of expected capex for phase 1. I assume that is the 60 MUSD loan that has been menthioned in the latest 10Q filings. But what about the other JV partner (Global Ocean Development). They shall provide 70% of the financing for Phase 1, that's about 140 MUSD. Will Siaf need to arrange that funding or put up With the Money themselves?
Stolpen, yes I have heard about it and SIAF doesn't even got one of the four big names as their auditor (except for Sweden).
That is why I wrote.
Andrew26, I think we are discussing two different things. I totally agree with you that the dilutive financing strategy is shareholder unfriendly and destructive.
However, when discussing “ can we trust the numbers?” it is comforting, for me at least, that they have hired a CFO and an internal auditor. I also think that Dan, being an American, would not risk being part of the BOD if he suspected that reported numbers were false.
Many of the latest postings here have been discussing if we can trust SIAF’s reported numbers or not. Here is another one.
Reported profits end up as equity on the liability side on the balance sheet and the increase in equity and liabilities corresponds to a similar increase in total assets. If the assets are for real then we can assume that reported profits are correct as well. The Auditor is responsible for checking the annual figures. It would be of value for shareholders in doubt or potential new shareholders to be informed how this audit is performed. How are the reported values of the assets verified?
SIAF has done a lot to enhance to credibility of the company lately. Like applying for a NASDAQ listing, including an American in the Board of Directors, hiring an experienced CFO and latest appointing an internal auditor. In addition SIAF gives very detailed information in its financial filings. All of this should be enough to give confidence for doubtful investors.
However, at the same time the Board of Directors provide the strongest argument for the company being a fraud themselves by the insane dilutive financing strategy.
RD, I had a quick look at HERB's latest 10Q filing. I have not looked at HERB before, and at first glance the Company looks very attractive in terms of valuation.
However, I noticed that sales and operating expenses for all the different subsidiaries had increased by same pace (9,4%)compared to a year ago. This is very unlikely, and a clear red flag. Page 13 note 11 in the 10Q filing.
http://www.sec.gov/Archives/edgar/data/1123312/000119983514000413/yasheng_10q-16106.htm
Time for a short squeeze rally? If BMAK doesn't come to rescue, we might see a short covering rally. Available SIAF Stocks for shorting have come down to 150 000 from 400 000 last week, according to Interactive brokers. A short covering rally would be Nice for a change.
https://www.interactivebrokers.com/en/?f=/en/trading/ViewShortableStocks.php%3Fkey%3Dsiaf%26amp;cntry%3Dusa%26amp;tag%3DUnited%2BStates%26amp;ib_entity%3Dllc%26amp;ln%3D%26amp;asset%3D
Once again SIAF managed to present an impressive report in terms of operational performance and earnings. However, in terms of financial discipline, they have a long way to go. All the cash-flow from operations in Q2of about 30 MUSD was eaten up by a similar increase in working capital (mainly a continued increase in accounts receivables).
SIAF has so far funded to the new Mega farm by extending payment terms to one of the owners of 12 MUSD and making advances to suppliers of about 8 MUSD. Free funding of customers and suppliers for the Mega farm is partly done by printing new shares at a PER of about 0.7X, which for the shareholders is just as dilutive as borrowing money at an interest rate of more than 100%.
This lack of financial discipline will probably also have negative influences on SIAF ability to get a bond loan. Potential bond investors will probably look at accounts receivables now standing at 117 MUSD and question of they are for real.
Although, I believe (hope) that SIAF will get a loan shortly. I hope that the extended date for the phone conference until 5th of September means that SIAF will have secured a loan by then. A loan of 100 MUSD is less than 1X EBITDA and should be possible, I think.
I have added some more shares today, but I would argue that in terms of risk/ reward it is probably better to buy shares when and if a loan is in place even if the share price would rise 20% on such good news.
RD, please do not provide JoeN with real ammo. It is better for all of us that he continues to play With his blanks. Otherwise we might get hurt. If you find any irregularities in SIAF's reporting, please contact the Company so they can correct the mistakes instead.
It would be great, but I think it is just Swedes that are back from celebrating Midsommarafton.
JoeN fantasies about a suspension could actually be seen as positive event. The company cannot issue more shares to fund growth anymore. Instead it will be forced to accept financial discipline or actually get external funding (loans). We, existing shareholders, will not be able to make the common mistake of selling to early. Instead we will be flooded be dividend payments starting in a year or two.
Joe’s threat of suspension is really a buy signal for those of you that are on the sideline.
PS , this was written with a touch of irony, so Joe you do not need to get upset.
Well, his contribution could be a matter for discussion.
NJM, I think it was me who asked first why SIAF thought that they could get project financing of 60 MUSD for the mega prawn farm when they have not managed to get funding themselves although they are profitable and have a strong balance sheet. The reply was that the loans were Connected. Then I asked if the potential funding was dependent on Nasdaq listing. Here Solomon first said it was dependent, or at least it sounded to me that he said it was dependent. However, Dan came in and clarified that the potential funding was not dependent on a Nasdaq listing. I think he thought about a potential bank loan. I guess that a bond loan will be much easier to place if Nasdaq has done the DD and approved it for uplisting.
I attended the JF spring dinner yesterday. A very nice evening with fantastic weather (lots of beers on the roof terasse). I met Hyberboy for the first time. A very nice person, besides being a great promoter of the Siaf stock. I met some other swedish investors that have invested in the SIAF Stock as well, but do not Write on Ihub. They very much appreciate reading the info that is provided here. So I forward a big THANK YOU to all of you that contribute on this forum.
Kul att träffas.
Very low activity today, both in terms of trading and posting. I guess that the National holiday in Sweden today has an impact.
I will be joining the JF Spring dinner in Stockholm on Monday and I know that Labroj and Hyberboy also will be there. Are there any more Ihub members that I will have chance to meet.
RD, to me it doesn't sound as though SIAF will have the Project loan for themselves. Part ofthe consulting is to assist in finding financing for the JV partners.
Sidney, this is what Solomon said about lower margins from cattle and prawns in Q1.
empty, from the Q1 report it sounds like SIAF is assisting in getting financing to one of the partners in the new megafarm.
NJM, if I remember correctly Solomon said in the CC for Q2 2013 that the Company had issued shares to unrelated third parties that could be bought back at a later stage. If I remember correctly it is about 11 million shares that can be repurchased at an average price of about 57 cents.
In the Q1 2014 report note 16c there is more information regarding settling debt by issuing shares to unrelated third parties (not JV partners)
Challe, I found this in the report regarding the number of eels.
The first batch of 400,000 eel fingerlings (sized about 30mm in length) was imported from Madagascar during late February 2014 and placed into the R&D station to study their adaptibility and growth rate in Guangzhou City districts in preparation for importing fingerlings to be grown in our APM farms starting in October 2014 to mid-March 2015. There were fairly high mortality rate with these batch of eel fingerling from Madagascar due to that they have not been fed properly while they were kept at Madagascar, as such the R&D station had hard times in nurturing them back to health resulting in much higher mortalities than originally expected. However by the end of April 2014, the R&D station managed to save over 300,000 baby eels with majority of them reaching 25 cm in length.Some 200,000 baby eels has been sold by the R&D station to Prawn Farm (2) for their 2nd stage of grow-out.
Thank you very much, all of you that share the information from the Charlotte Meeting. I especially appreciate the comments from KAVDIV and NJM.
I assume some questions were asked about the size of capex and increase in working capital for 2014 and how much that needs to be funded by external sources (more shares or a bond).Solomon said 30MUSD on the CC, but I think that number relates to 2013.
I will buy you guys a drink at the 10 dollar party next (week, year, decade?).
In the CC yesterday, Solomon was asked about estimated Capex for 2014. In his reply he said a working Capital need of 120 MUSD of which 30 MUSD not funded by internal funds, and that this information could be found in the 10K. I have looked for that information, but haven't found any comments regarding Capex for 2014. However, there is some information about funding for 2013. I think he has misunderstood the question or did not want to disclose the information.
Agrinos, a Company listed on the OTC market in Norway, today announced a Cooperation with Kingenta a large Chinese fertilizer producer.
http://int.agrinos.com/node/585
Agrinos reported sales of 4.3 MUSD in 2013 and a net result of -44.1 MUSD. Total Equity 83.8 MUSD, cash 25 MUSD. Current mrket cap is bout 75 MUSD.
I am not familiar with te legal system in the US (SIAF being an american company). But, in case of a fraud a lot of responsabiliy lies with BOD. It is comforting that the BOD consists both of a Swede, Mr Sandberg and an American, Dan Ritchey.I am sure that none of them would risk to be part of the BOD if they smelled that "something fishey was going on". They might confuse the smell with shrimp, though.
Kavdiv98,
Congratulations, you have really managed to embarrass yourself today.
Kavdiv98,
Unlike you I have actually met him, and I think he is the right man for the job. I do not know the purpose behind your anger towards Erik, but if you think he is the wrong man for the job, don't criticize him criticize the people that hired him. If Solomon and Sandberg hired the wrong guy, then blame them not Erik.Once more you are barking at the wrong tree.