is Loving China.. considering learning Mandarian
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It varies greatly, a pure start-up with no assets and no revenue, just a business plan and management team, can be done for around $65K-$75K.
Your biggest cost factor is the audit. The attorney fee's are typically the same, around $35K -$40K for domestic and $50K-$60K for foreign.
Audit for a start-up can run as little as $2,500, whereas an audit for a $50M a year company can run upwards of $30K+.
Going public from scratch is in my opinion not only cheaper, but faster.
I refer all my clients this this guy http://www.gopublicdirect.com
He has had companies clear the SEC in days.. not months.
Your two biggest expenses in going public direct is the audit and legal fees. Funny thing though, your going to spend the same amount of money on both whether you go public with, or without a shell.
This notion it is faster.. ridiculous. Besides, if your saving your company hundreds of thousands of dollars, what is the big hurry anyway?
Wait on buying a R/M, almost in every case the stock will get promoted and the previous directors, shell brokers and consultants will sell. Then comes the financing..
I think R/M are bad..
First it shows management didn't conduct proper due diligence in the going public process and hired some second rate consultant. Why? Because it costs less to go public from scratch and results in a much cleaner and stable equity environment for the company. The company, whether it uses a shell or not, is still required to file a full disclosure statement such as a Form 10. The information, legal costs and audit fees are THE SAME whether they go public from scratch on a Form S-1 or use a shell. The costs and effort to file ARE THE SAME! The only difference is the company is out the money for the shell and the loss in equity by having people with pre-merger shares.
Now, why I hate R/M, in a R/M the promoters, shell brokers, consultants and previous directors all have some equity left over in the shell. These guys will sell, sell, sell and sell some more the first chance they get. In almost every case I have studied, this HURTS the company and the share price. By the time the non-affiliates cash out, the stock is left with a crappy share price making it difficult for the company to obtain attractive financing.
I would wait at least 6 months to a year before ever investing into a R/M. Management needs to prove itself.. because by conducting a R/M they have already proven they don't know anything about the securities market or setting up a public company..
Oh I bought a bunch under $.05. Doesn't hurt to add liquidity every once in awhile lol. FEED went sour, I haven't traded it in awhile. I thought it would bounce here recently but it disappointed.
better bid higher ;)
.8801 through AUTO.. you'll have to do better.
Impatience..
Patience..
Time,Symb,Side,Price,Qty,Route,Broker,Account,Type,Cloid
13:18:34,SIAF,B,0.89,2500,ATD,,18138834,Margin,L091021000871
haha.. well I already sold it at $5.25 for a loss. Didn't break and run when it should have. Warrants still keeping it bogged down I guess.
Yeah EPS wasn't all that great, but they just invested a ton of money into more growth. Everything with FEED is forward looking.
FEED chart.. primed for move
I'm a buyer at $5.28
SIAF only has about a 1.9M public float, volume isn't going to be high, not with a low float stock. Good news is, with the recent jump in daily volume, the stock should be basing here around $.90-$1 now. It has always moved in spurts, then consolidated.
CNOA was my second pick after SIAF..
March 24th.. $.16 per share, How many 10 baggers can one pick in a year hahah !
http://investorshub.advfn.com/boards/read_msg.aspx?Message_id=36533420&txt2find=cnoa
Might want to re-read those numbers again..
Book is audited at $.89 a share and well over $1 now. Forward EPS is $.13 by Company management. 2007 Audited was $.06.
So if you want to go by audited numbers only, the stock is trading 1.2X book and trailing 18X earnings (Forward 8 P/E) @ $1.07
Audited Share Capital..
Where the insiders and partners stand in regards to the value of their shares.
From the Audited 2006 and 2007 Annual Report, conducted by Madsen and Associates, CPA's, a PCAOB registered firm.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=22945
Page 29
SHARE CAPITAL
The Group’s share capital as at December 31, 2007 and December 31, 2006 shown on the consolidated balance sheet represents the aggregate nominal value of the share capital of the Company as at that date and reverse merger date respectively.
The Company has authorized capital of (i) preferred stock $10,000 divided into 10,000,000 shares of par value $0.001 each with 0 shares issued and outstanding, and (ii) common stock $100,000 divided into 100,000,000 shares of par value $0.001 each with 52,943,579 shares and 32,000,000 issued and outstanding at December 31, 2007 and December 31, 2006 respectively.
On July, 24 2007 the Company completed the implementation of capital reduction scheme and reverse merger that resulted in :-
(a)
The cancellation of shares outstanding of 9,900,000 valued at US$199,800.
(b)
The issuance of 10,804,579 shares value at US$10,805 to existing debenture holders; and
(c)
The issuance of 139,000 shares valued at US$139 to existing public shareholders.
(d) Reverse merger of 100% equity of Capital Award Inc.
The purchase price of $19,707,157 was satisfied by the issuance of 32,000,000 SIAF shares valued at $19,707,157 or $ 0.6158 per share each in exchange for shares of CA.
On September 5, 2007, the Company completed the acquisition of the following subsidiaries as follows:-
(a)
Acquisition of 100% equity of Macau Eiji Company Limitada
The purchase price of $6,675,000 was satisfied by the issuance of 2,000,000 SIAF shares valued at $4,675,000 or $2.3375 per share and the balance of $2,000,000 paid in cash.
(b)
Acquisition of 100% equity of Hang Yu Tai Investment Limitada
The purchase price of $26,910,000 was satisfied by the issuance of 7,000,000 SIAF shares valued at $16,910,000 or $2.4157 per share and the balance of $ 10,000,000 paid in cash.
(c)
Acquisition of 100% equity of Tri-way Industries Limited
The purchase price of $3,250,000 was satisfied by the issuance of 1,000,000 SIAF shares valued at $2,250,000 or $2.25 per share and the balance of $1,000,000 paid in cash.
2
From June 19th
Original JV announcement..
This project is estimated by us to produce approximately 2,000 tons of Feed Stock, 2,000 tons of Organic Fertilizer and 4,000 tons of Combined Fertilizer in 2009, with production growing to over 100,000 tons of Feed Stock, 45,000 tons of Organic Fertilizer, 90,000 tons of Combined Fertilizer and 50,000 tons of special Dairy Cow Feed by 2012.
I got this from the CEO.. Hope it helps..
(1 Chinese yuan = 0.146486 U.S. dollars exchange rate as of today)
Organic Fertilizer 700RMB/TON
Combined Fertilizer 2,300RMB/TON
General Stock Feed 650RMB/TON
Special Dairy Cow Feed 1,450RMB/TON
You took position before probing.. Joe, say it so! lol ;-P
Two choices..
Scottrade and other retail brokers are gay..
Switch to an ECN platform. I use http://www.nobletrading.com and love it. You get 4X daily margin for day trading marginable stocks.
The other, more aggressive trading possibility is with http://www.wtctrading.com You get 10X daily margin for marginable stocks. Yep.. 10X margin, but you really gotta be good cause you can go broke quick if you don't understand the risks associated with margin trading.
Nah man, I'll wait till it is $4+ and on the NASDAQ. I did my DD.
Started buying at $.009 all the way through $.09. I'm obviously riding a large amount of free shares lol.
SIAF blue sky..
This board is a tapestry of awesomeness
Ha-ha.. I like that lol
roflmao
Going long is for suckers lol! Seriously though, I do have "long" positions but I do actively trade a portion of my holdings, but it is ultimately to increase my holdings through cost average trading.
When a stock has a strong rally, I will bleed a few off for profit, eventually the rally will subside and pull back some. Then I just buy back more for the same amount of money.. thus increasing my total holdings without spending one extra dime.
I've just been following the China indexes when determining how to set my portfolio up. The flow of money in and out seems pretty consistent.
SIAF $1.02 blue sky breakout nearing
This has become a great board, Chinastockpicker has done an excellent job. I simply couldn't handle the responsibility anymore, I'm just glad to see what I started turning out so well.
Can't stress Due Diligence enough, but it goes beyond just looking at financial statements. Researching management, audit firms, attorneys, cross referencing people and business associations.
Anyone can read a balance sheet, it takes effort though to be very thorough. I probably spend 30 hours a week on research alone. Me and Google have become inseparable lol.
When you get good at research and stay on top of things.. you can get buys like this..
1/29/2009 SIAF BOUGHT 10000 SHARES OF SIAF AT $0.009 ($7.45) $0.00 ($97.45)
They probably figured they could make more money that way haha.
APRB Good catch, yeah it would appear to be over valued.
GHII/SIAF
They did everything right, but the Auditor is throwing up barriers at the last minute due to some land-rights evaluation issue (Earlier this year, they took some land-rights for some A/R value as a trade).
Holy crap haha.. their auditor isn't Madsen and Associates is it? lol..
Same thing happened to SIAF and why they missed the opportunity to file the Form 10 in 2009. They completed the required two year back audit to file http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=22945
Then at the last minute the auditor threw up "barriers" like you just said about the land-rights evaluation. They made SIAF write off $19.6M in 2006 and $6.7M in 2007 of goodwill based on the land-rights acquisitions. The CEO was pissed and fought it, ended up loosing the fight and it ended up delaying the filing a whole year. Now he has to audit 2008-2009 lol before he can file.
Fwiw, had the auditor not made SIAF write off the $6.7M in 2007, their audited balance sheet and EPS would have been much much higher.
I would bet folks knew about the settlement long before it was on PACER. That is obvious from the jump in volume in October.
OT: Where is the boy then? He fall out :(
OT: Holy Crap!..
You guys seen this yet... talk about a first!
It's all over the news
http://www.thedenverchannel.com/news/21306839/detail.html
SIAF $1.02 Blue sky break looming
Understand Rule 144 is a must, for both OTCBB and pinks.
I have found understanding securities laws and regs have been far more beneficial to me then basic fundamental analysis knowledge.
Anyone can add P/E's up.. but understanding how the equity flows is very important.
SIAF trading about a 7 forward P/E and book is near $1 per share. They are completing a lot of their start-up construction, so I'm expecting 2010 to see huge growth.
One interesting thing about SIAF that many don't talk about is Rule 144(i) and the whole reason they are filing a Form 10.
When they consummated the R/M with Volcanic Gold, the SEC had adopted rule changes to both Rule 145 and 144. Specifically Rule 144(i), in that any Company that had ever been a Shell, must become a reporting issuer should the business change.
This was done to curb the abuse of pinksheet R/M's. The float in SIAF will remain static for quite some time to come. Insiders and affiliates can't use Rule 144 to un-restrict their shares until at minimum 12 months after filing a Form 10. They also can't issue any new shares and utilize Rule 144.
That itself is a big plus when taken into overall consideration. It also makes it mandatory for SIAF to become reporting if insiders and affiliates ever want to have liquidity. Something to think about..
Some research links..
http://www.google.com/#hl=en&source=hp&q=Rule+144i&aq=f&aqi=g-sx3g-s1g-sx1&oq=&fp=c807e9ccc08a197a
If this isn't an uptrend chart I don't know what is..
$1 break could be huge this time around considering recent news and developments.
Just keep in mind, the public float is only about 7% of the O/S. So, having a dividend is realistic because it would ultimately be insiders and affiliates who are getting that dividend anyway. We get to share in that since the Company is structured through common ownership as there are no preferred issued. Based on their audited 2006-2007 financials and subsequent reports, I wouldn't imagine a large dividend, maybe a few pennies. But for insiders that would be a pretty nice reward.
I have spoken with the CEO, if you email him he does get back with you and his English is pretty good. He also takes the time to talk on the phone, but you kinda have to schedule that. The Government subsidies they are getting are really helping the retained earnings side, which is allowing them to have a cash surplus. The CEO is very experienced and intelligent which is refreshing after having dealt with so many other pinksheet CEO's.
Google "Fish Protech" also "Lee Solomon Yip Kun", that is a project the CEO launched and what eventually became the RAS technology he brought into Asia. The guy knows his fishery business and China wants to start using it. For those willing to take the time to conduct in depth DD, the company is a true diamond in the rough.
Weekly chart
It is getting thinner by the trade, no doubt.
Dunno about market price, no one can guess that. EPS should be around $.13 for 2009, book value is close to $1 now and the company should at least see 20% growth per year. Add your favorite multiplier and you'll have your price target.