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Kavdiv98,
That was along reply that included some arguments that I do not agree with. Firstly, the recruitment process of the CEO for the Swedish sub. I don’t think that SIAF should spend too much time and resources in search for a CEO for the Swedish sub, especially since they had a strong internal candidate that knows the company well and has been working with the bond deal for some time.
Then you say that Eric is not serious professional since he hasn’t a linked in page. Now you need to change your entire view of him, since he has got a page.
Thirdly, you say that the dividend date announcement came from Sweden and Erik and Sandberg are responsible for that. I say once again, it is the responsibility of the entire board. What makes you think that Erik and Sandberg have a particular responsibility for that announcement? Erik is not even a member of the board.
You also say that Sandberg is responsible for the Penser failure. He should have made sure that Penser does not have the option to say no. I do not know why Penser said no, if it was because they did not trust the numbers or did not like the way funding was done (printing new shares to suppliers). Whatever the reason was, it is the entire BOD that has the responsibility, not just one single board member.
However, one thing I do agree with you is that I hope it works out for all of us.
Kavdiv 98, I have noticed your negative comments regarding Eric’s appointment as a CEO for the Swedish sub and demanded that he should be fired if he doesn’t deliver a bond financing within three months. I think your criticism is misplaced. First of all you should realize that a bond for a US company with operations in China will meet many skeptical investors. Furthermore, if the latest audited numbers are from 2012, and the company since then has changed the auditor, it is a no go. Don’t expect any action from bond financing before the edited 2013 numbers are out.
You also criticize the hiring process of Eric as a CEO for the Swedish sub. The main purpose of the Swedish sub is to facilitate capital raisings and IR rep. I find it natural to hire a person that has good knowledge of the company in the first place. Furthermore, I believe that Eric was already working for SIAF as a consultant before he got the position as CEO for the Swedish sub.
You also blame Mr Sandberg for the Penser failure. I say, that is a failure for the entire BOD not just one member. The same goes for the dilutive financing strategy. It is the responsibility of the entire BOD, not just Solomon although he, with his golden shares, can practically run the entire show. It is actually because of Mr Sanberg that I have taken a relatively large exposure in SIAF, not because I think he is a genius. But I am convinced he is not part of a scam. He might get fooled though, and other might go as far as saying he is a fool. I for certainly don’t buy all of his recommendations. One for example, Cassandra Oil, I wouldn’t touch with a stick.
I would be very surprised if the bondloan was launched before the uadited full-year results. If I was, an Institutional bond investor, I would certainly wait for the full-year audited result, especially since SIAF changed their audit Company in 2013.
Peace 2, I think you have misunderstood the terms of the agreement. The 10 % relates to the 25 000 USD per APM.
Next we have to find out how Glory Ocean Development (GOD) is financed so it really can pay SIAF.
The fee for the A Power license is calculated at US$25,000 per APM times number of APMs that will be constructed in each phase of development of the project payable by the Licensee in the following procedures and phases:-
(a) The Initial Payment per phase of development:
10% deposit shall be paid by the Licensee within 60 days from the invoice date issued by the Company in accordance with Licensee’s purchase order.
I share your view that SIAF is not a fraud. Another "proof" for that, is Dan Ritchey, the new Board member. As a American, I doubt that he would not take on the responsibility to be a Board member if he smelled that ther were something "fishey in Siaf's books"
Merry Christmas everyone. Latest quote 53.5. That's all I want for Christmas. Thanks Solomon, sorry Santa.
I have heard the name Peter Benson, linked to Siaf before. He might be the new guy in this office. Assist in capital raising. Could it have something to do with the new bond?
Bonebreaker, it is too yearly to conclude that the second bond was a failure. It requires substantial more legal documentation, than what was expected, so that is the cause for the delay. In the mean time, we can add to our holdings at attractive prices. When (if), the bond has been fully subscribed, share prices around 40 cents should be history.
Viking, I do not think there were any cash payments involved, just changes of items on the balance sheet. That's why I asked why these transactions were done during Q3. Obviously, SIAF would have preferred cash instead of increased deposits for future Investments at this stage.
I wrote an email to Peter some day ago relating to what you are discussing right now. Peter replied that he would forward my accounting questions. I haven't heard anything yet, but enclose part of my email here.
"Hi Peter, I have some questions that might be to detailed for the CC. I hope you or Solomon can help me out.
First I must say that the report I very detailed with lots of interesting information, thank you very much. It must be quite some work for a company without a “proper CFO”.
I noticed that accounts receivables (AR) decreased by about 23 MUSD during the quarter. However, deposits and prepaid expenses increased by more than 30 MUSD. As it was AR related to consulting income that fell, and “temporary deposits and pre-payments in future assets in future Sino Foreign JV” that increased with about the same amount there is obviously a connection. Can you give me some more details why these investments (increase in deposits) are being done in this quarter, and also it seems to me that some investments are being done in companies that SIAF already consolidate (Fish farm 1)? In such a case, income from consulting to a group company (consolidated) should not be included as income in the first place.
Note 2B in the report page 57
Secondly, are the results from companies that SIAF today hold 25% in like, Prawn farm 1,2, to be found in the report somewhere?
For the CC I hope lines are better this time and that Solomon will address the funding situation future needs and ways of financing."
I will buy some more shares today because you have to assume that a genius like Solomon Lee would have to be able to get it right at some point.
RD, I assume that there is a connection between the reduction in accounts recievables and the increase in deposits. Maybee, income from consulting fees (AR) is used to finance the increased holdings in PF2. No cash involved in this transaction, just reduction in AR and increase in deposits. This is just my quessing, haven't checked it with Peter. SIAF has said that they see low risk in their AR. If the customer don't pay in time, they can use the AR as payment for increased holdings in the JV.
I spoke to someone close to the compnay last week. He said that Solomon had met with some Swedish institutions (potential bond investors)and presented the company. There were no sale of the bond at that time. Since SIAF is a non Swedish company some additional legal work has to be done before the sale of the bond can take place. Hopefully, the bond will be placed before the end of the year.
Has the SIAF Message Board "gone dark" today?
Yesterday, I spoke to a person that are working with the placing of the bond. From my understanding, the company are mainly focusing on Institutional investors and the terms have been adjusted to fit their requirements. In what way, the terms have been adjusted I do not know, but it was not a convertible bond. It could be, that the bond is secured with some assets, but that's just me speculating. I did not get any details, but from my reading of the conversation, it sounded positive.
RD, as other has pointed out as well. The two filings give the same information. In the period 10/10-21/12, 8 073 563 shares were issued for settlement of debt of 4 844 314 USD. The dates and volumes differ, but on aggregate it is the same numbers. You call that fraudulent activity and are extremely upset. Maybee, you need some kind of pill, to ease your bad temper when the shareprice is falling.
I am a fairly recent member on Ihub, and do appreciate your hard work in digging up interesting information and sharing it with us. But this post of yours was really out of line.
Interesting, but not bullish read for us tortured shareholders in SIAF.
http://www.beyondproxy.com/detecting-accounting-fraud-asia/
I don't know. But I could be something related to the expected Dragon Head status for SJAP. This is pure speculation from my side.
Yes, I attended one of the meetings in Stockholm and this issue was discussed.
The real ownership in SJAP has been discussed here before. I have heard that the ownership is 75% from a "hopefully reliable source", that did not wanted to be quoted. If the ownership is 75%, then SIAF could list a third of its holding and still have a 50% control and continue to consolidate SJAP.
I asked Solomon for more details regarding the shares that were issued like a loan (possible to buy back in the future). From what I recall it was about 11 million shares, that could be bought back within 3 years. The repurchase price was about 57-58 cents on average.
This is from the Jordanfonden website
"Pga jobb med listning och finansiering är JF arbetandes utanför kontoret hela denna vecka."
It says , "Due to work With listing and financing JF will be working outside Office for the remaing part of this week"
Let's hope it relates to SIAF.
labroj, I will also attend the Meeting on Monday. Looking forward to meeting you.
I asked IR about factoring. This is the reply I recieved.
`"I would venture that factoring is simply not a thing done in China, and would not be undertaken outside of China for a/r inside China.
I suspect this idea is related to your accounting questions as well. That is, because assets in China can be shielded from a judgment
from an outside legal system, or it may be difficult to exercise any legal judgment, it is difficult to create adequate collateral. It's kind of a catch-22.
I believe that some loans require personal guarantees, because of this collateral conundrum.
But I am not an expert, to say the least.
Regards,
Peter Grossman
"
Many thanks for the details of the bond offering LL. If the bond offering is not fully subscribed for, I hope SIAF will use the bond when paying Suppliers instead of issuing more shares. SIAF's Suppliers should find this form of payment as more interesting and safer instead of shares that keep falling in value. I have increased my holdings in Siaf based on this information. Thanks LL
I follow with interest the discussions on this forum if SIAF is a scam or not. I am not yet convinced the company is legit and, accordingly I have not invested as much as I otherwise would have done. The main argument for it being a fraud, is of course the constant issue of more shares at ridiculously low prices. No rational investor would sell a stock at such a low valuation. But there is one big seller. The company itself continues to issue more shares in order to pay suppliers. Accordingly, it is easy to think that the company is a scam. On the other hand, it could be legit and it is just the financing strategy that has collapsed.
If the value of the company had been reflected in the share price, we wouldn’t have been so upset with this kind of financing.
I saw some comments that more photos and videos from fishing and farming operations could make the investors more comfortable with the reported numbers. One should have in mind that a large part of revenue and profits emanates from service contracts. Photos and videos will not say very much from this source of income. If the reported profit are for real it will show up in the balance sheet, both as an increase in equity as well as in assets. It is the job of the auditor, to check that the assets are for real and valued correctly. Let’s hope he has done his job properly.
Looking at the Q1 report, the profit for the period resulted mainly in a similar increase in accounts receivables. So far, SIAF has not reported any loss on accounts receivables.
My main concern however, is that Mr Solomon and other founders of the company have full voting power through their preference shares. If they want to deceive us other shareholders by selling the entire business operation at an unfavorable price they could easily do so.
As the company is looking into bond financing, I hope the dilution from new shares has been reduced in the second quarter. If a bond deal in not materialized, SIAF should try to get credit from their suppliers instead. One should think that suppliers would be more pleased to earn 10 to 12 % interest per year instead of receiving a share that falls steadily in value.
I found a recent Stock report on SIAF. It is not a research report with a recomendation, just an update after the Q1 numbers. However, the report includes some comparisons With peer companies. One of these companies in the comparison also look extremely cheap, With a PE below 1. The name of the Company is YaSheng Group (ticker,HERB). But when looking at the numbers, it looks very much like a fraud. All profits end up as increased Inventory in the balance sheet, and the Q1/Q1 comparison look strange (copy paste). Any of you, looked at this Company before?
http://solutions.standardandpoors.com/NASApp/WS/EntryServlet?pc=IVS&tracking=IVSSINO_AGRO_FOOD_INC&auth=user&pagename=encrStockReportPDF&company=241064212166241180158080232065180111204068075190
Sorry for repeating old news. I appreciate Your efforts to share interesting information. Thank you very much Melehuna.
I found these comments on the Yahoo Message Board. The comments are from a the signature Sirola1 and relates to the Meetings in Stockholm. Maybee it's old News for all of you here, but it was interesting read to me.
http://finance.yahoo.com/mbview/threadview/;_ylt=AvCicZo9wh9cgvQeF_AfywveAohG;_ylu=X3oDMTB2cGljN2lsBHBvcwMxNQRzZWMDTWVkaWFNc2dCb2FyZHNYSFJVbHQ-;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3?&bn=c7eebb2a-d6e3-385e-93bd-5e0b0bf07972&tid=1370734829364-66b49418-e722-469e-813e-2cea94c9ed66&tls=la%2Cd%2C2%2C3
Anyone from Sweden that has participated in the phone conference before. What is the charge for connecting through a cell-phone?