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There's an old adage "What the wise do in the beginning, fools do in the end." You got fooled!
We will see who called it right soon! BUY MORE oh wise one!
So far not impressed. I am not a stock person. Bought this as suggested by Hyperboy, a fellow employee. He said this was going to be our retirement. I bought it at .55 to .70 per share before it reversed. I am now down 50% of my initial investment. Got excited when it made it to $18 per share. Had dreams of the old Walmart $1000 investment turning into millions! Oh well I am here long term and hope his advice was right! Wondering if having a fire sale or hanging on risking it all? I won't go hungry if it totally fails. Welcome to the stock world! I used to read comments about a $100 party but no more.
a big reason why as a long term shareholder I welcome the cash dividend policy, is not so much for the pennies but to instill some sort of financial discipline...Another good reason for it is that it will allow new money a way to value the company more reliably than by using measures like earnings or book value which are more easily manipulated
I did some research on share buybacks a couple of years ago for Chinese small caps. 6 or 7 out of 8 crashed in the following 12 months.
And people simply don't understand that if a stock is so cheap, why management doesn't repurchase more of it. The company loses credibility.
The truth is, I am not fully against the buy-back program as long as they are paying way below its intrinsic value or able to allocate this capital for better use other than capex or dividends.
So you are saying that the BOD acted irresponsibly when they announced the cash dividend policy?
So the next question is, can they announce the end of dilution, and how?
Can you tell me what's the purpose of carving off the TRW if eventually SIAF would own the majority of it again? I just don't understand, it seems like TRW is not ready to be spun off yet.
I've been telling people there's a 25% chance that Yasheng will be acquired by a sister company (with a listing in Shanghai). It is speculation. But, there are also some interesting signs that point in that direction.
So I will get these things wrong most of the time. BUT, if I am right then I will hit the MEGA MEGA MEGA JACKPOT even with a small investment.
When you speculate as much as I do, then you are bound to get 70% or more wrong.
And when I say "dilution should end soon" ....
Because we CAN. Because we know why TRW is profitable (and most competitors are not). Because we know it will grow. How fast, depends on financing.
I didn't keep track of all the predictions you got it all wrong. But didn't you predict several times that the dilution is over? That might have mislead other people who trusted you.
There a many aspects to consider. There is operations. Then there is growth. Then there is valuation by the market (share price). Then there is management who usually don't deliver.
It is very hard to predict the future. But it is relatively easy to predict the future for TRW. At least it is for me. That's why I am here.
As for how many predictions I got wrong or right...
I was the one who said they can't get 10,000 MT of freshwater prawns from AF4. And you should be happy with half, or 5,000 MT. If they can get 3,000 MT of Mexican White from it, they will still be very profitable. And they will have a business case for AF5.
ODRAS has performed better than expected. I was targeting something like 60 MT/ha conservatively. They already did 80 MT the first year and they can do 120 MT. Solomon believes he can take it to over 200 MT.
AF1, AF2, AF3 are quite profitable as expected.
Growth depends on financing. Partnerships.
There is no share price for TRW.
If you object to it, you should invest in companies that lose money.
And if you don't think TRW will do well in the future, then you shouldn't be invested in SIAF at all.
The value of your TRW shares will go up by half of that, or $1.5M / 18.3M = $0.082 every quarter. If they don't grow, which they will.
There is too many uncertainty in TRW too. It's seems like SIAF will play a big role on it as well.
The good news is, even if they raise the A/S this time, it would take at least 4 weeks until it becomes effective.
There is roughly 20 days between filing the DEF 14C and becoming effective.
The bad news could be if the O/S goes DOWN. Because that means they transferred common shares to preferred shares and they can issue more common shares. Other than that, I think dilution has ended for the next 4-5 weeks, until after the ex-date.
PRE 14C 2017-07-24
DEF 14C 2017-08-04
Effective 2017-08-25
PRE 14C 2016-11-14
DEF 14C 2016-12-06
Effective 2016-12-28
I am not even surprised. I don't even speculate about the O/S. When they increased the A/S, I always knew they're going all the way to its max limit and repeat the cycle. Soon or later, they would do reverse split OR another increase on A/S. When that happens, we always have to expect for the worst.
On November 10, 2014, the Company approved an amendment to the Corporation’s Articles of Incorporation to effectuate a reverse stock split (the “Reverse Split”) of the Corporation’s common stock, par value $0.001 per share (the “Common Stock”) affecting both the authorized and issued and outstanding number of such shares by a ratio of 9.9 for 1. The Reverse Split became effective in the State of Nevada on December 16, 2014. Subsequent to the December 31, 2014, the Board of directors and the holders of a majority of the voting power of our stockholders of the company have approved an amendment to articles of incorporation to increase its authorized shares of Common Stock from 17,171,716 to 22,727,272.
The Board of directors and the holders of a majority of the voting power of our stockholders of the company have approved an amendment to articles of incorporation to increase its authorized shares of Common Stock from 22,727,272 to 27,000,000 and the amendment was filed on December 28, 2016.
During the year ended December 31, 2017, the Company (i) issued 1,167,502 shares of employees and directors at fair value of $1.00 to $3.45 per share for $1,452,984 for employee compensation; (ii) issued 500,800 shares of common stock valued to professionals at fair value of $1 per share for $500,800 for service compensation; (iii) issued 4,074,979 shares of common stock ranging from $1.40 to $5.15 amounting to $12,054,045 as collateral to secure trade and loan facilities, and the shares issued by the Company were valued at the trading price of the stock on the date the shares were issued; and (iv) 892,735 shares of common stock issued for $0 as top up securities for debts loans.
The Board of directors and the holders of a majority of the voting power of our stockholders of the company have approved an amendment to articles of incorporation to increase its authorized shares of Common Stock from 27,000,000 to 50,000,000 and the amendment was filed on August 24, 2017 with an effective date of August 25, 2017.
During the six months ended June 30, 2018, the Company (i) issued 72,450 shares of common stock valued to employees and directors at fair value of $1.56 per share for $113,022 for employee compensation; (ii) issued 10,870,167 shares of common stock valued to professionals and contractors at fair value ranging from $ 0.55 to $1.00 per share for 6,886,045 for service compensation; and the shares issued by the Company were valued at the trading price of the stock on the date the shares were issued.
But... you have to go back 1 to 2 years. SIAF's initial plan was to distribute half (or 18.3%) of its ownership in TRW. Then... they found out they may need a F-1 filing for this. Then... they found out there was a tax liability if they distribute the TRW shares. That was roughly a year ago. So they figured out a different way to distribute the 18.3%, namely, let TRW do it.
Does these Triway shares then end up in Siaf treasury adding to the percentage controlled by Siaf/Solly?
The second tranche distribution date is predicated on the date that SIAF completes its outstanding debt obligation payment to third-party lenders holding shares of SIAF as collateral, that is 8,445,435 SIAF shares, that are required to be returned to SIAF along with any and all dividend shares that had / have been distributed / received against those shares, which, under the current example, represents an approximate 3.29m TRW common shares becoming available for distribution to SIAF shareholders holding the aforementioned 39m shares eligible to receive dividends.
TRW is distributing 18.3%. In exchange for debt reduction.
If nothing else changes then SIAF will own 36.6% + $50M debt.
If SIAF gives back 18.3% then it will be $62M more.
So, on the ex-date, SIAF's assets will go down by $53M + $9M (A/R + Other debt)
TRW is distributing 18.3%. Which probably means it is coming from the reserved shares. So now the new situation is
- SIAF owns 36.6%
- Partners own 31%
- 14% also owned by partners but reserved (to be sold) during the pre-IPO.
- 18% owned by SIAF shareholders
I think I am getting close to understand this whole situation.
- SIAF owns 36.6%
- Partners own 31%
- 14% also owned by partners but reserved (to be sold) during the pre-IPO.
- 18% owned by SIAF shareholders
The partners own less, in exchange for debt reduction.
TRW is distributing 18.3%. In exchange for debt reduction.
The debt will be $112M if SIAF retains 18.3%. And $62M less if they retain 36.6%.
To liquidate outstanding debt owed SIAF of $62,338,065 that they mentioned on previous report, first TRW will have to settle the $53,460,749 of CA receivables. Which will leave TRW with $8,877,316 or 9M in hand after the settlement.
$62,338,065 - $53,460,749 = $8,877,316 or 9M.
Secondly, the remaining 9M will be used to pay off the Amount due from a consolidated equity investee - TRW which is $59,312,033. That will leave TRW with approximately $50M owed to SIAF.
$59M - 9M = $50M
Lastly, once the 18.3% TRW ownership is returned which has a value of $62M. The TRW owed to SIAF should go up by the same amount.
Now, the total debt will be 112M as you mentioned.
$50M + $62M = $112M
I think it is a lot easier for me to understand this way.
But after the 18.3% distribution, the $112M debt should go down by $62M am II right?
But where do you see these 111M Account Receivables in 10-Q though?
Actually that isn't correct. After the distribution the debt should still be $111M. First, it is reduced by $62.3M after which SIAF gives 18.3M shares back to TRW, which increases the debt by $62.3M. So it's still $111M.
Or, 58 - 9 + 62 = 111
Note (11) Breakdown of Accounts receivable:
Consulting and Service (C&S) totaling: $53,460,749
Sales of imported seafood (Corporate Sector of SIAF): $18,639,559
Sales of Cattle and Beef Meats (from Enping Farm) (MEIJI): $4,427,687
Sales of HU Flowers (Fresh & Dried) (JHST): $1,567,527
Sales Fertilizer, Bulk Stock feed and Cattle by (SJAP): $6,876,220
Sales Fertilizer from (HSA): 4,073,563
Total: $89,045,305
The accounts receivable of CA’s C&S services totals US$53,460,749 made up of $982,223 (0 – 30 days), $9,188,981 (over 90-days & less than one-year), and $43,289,545 (over one year).
I'm just wondering, since TRW is a private company for now, how do you analyze its financial health?
$43,289,545 is to be settled by Tri-way’s shares included in the 36.6% equity shares that the Company received from the “Carve-out” exercise as discussed in the Company’s 2017 10K filing.
SIAF common shareholders who have received common shares of TRW will be able to access an individualized web-page at some point prior to year-end 2018 to see their share balance displayed along with any private transactions they might initiate between themselves and buyers / sellers of TRW shares subtracted from and / or added to the balance of shares recorded under their name on November 14, 2018. The details of when and how to access one’s individualized web page will be disseminated by TRW via press release once those pages go live and become
available.
Thanks for the response! I am trying to learn as much as possible about this company and its history since I didn't have much time because of work and other stuff, so bear with me if I have to keep asking you more questions.
Another question:
based on exercising its option to liquidate outstanding debt owed SIAF of USD 62,338,065, covering both a portion or all of accounts payable and other payables owed SIAF, to date...Repayment of the USD 62,338,065 debt outstanding represents an 18.3% ownership distribution in TRW to owners/shareholders of SIAF.
(a) SIAF issues 5,196,333 shares of its common stock and transfer 400,000 shares of TRW to the note holder
As a result, the amount outstanding under Note 1 was reclassified as other payables – straight note payable of $29,367,999
Im not saying everything Solly does is fantastic, but a negative mind will never give you a positive life.
Try to focus on the good things he has done, and tell him your opinion when he is wrong.
And when you tell him your opinion, give him an alternative way and a reason for why your method is better, and he will consider your opinion.
Also keep in mind that SIAF may decide to retain 36.6%
As alluded to in our Form 10-Q for the period ended March 31, 2018, the Company has been in communication with Tri-way on a concept / plan that allows our common shareholders, eligible to receive dividend, to receive 18.3% cumulative ownership in Tri-way that does not impose a tax-liability to either company. The outline of the distribution plan will be made public by Tri-way in the next few weeks. Essentially, we believe that there will be two (2) scheduled distributions whereby, under each distribution, SIAF shareholders in exchange for Tri-way debt held by SIAF will receive convertible preferred shares of Tri-way in an amount equivalent to $3.41 per share value of one common share of Tri-way, the number of preferred shares to be received in book entry form to be based on the number of SIAF shares held by each eligible shareholder as at / on two (2) separate Record Dates, the dates of which shall be announced by Tri-way along with possibly their Conversion Dates announced, simultaneously.
I think it starts to make sense to me now! It's like they are trying to do things in reverse.
I know that SIAF can't simply distribute the 18.3% to shareholders for tax reasons. But how is it going to make a difference when the Company decides to "give 18.3% back to TRW" then TRW distributes these shares to SIAF's shareholder? Are they exceptions to these tax rules? Or the main purpose of this whole thing is for TRW debt reduction?
Actually that isn't correct. After the distribution the debt should still be $111M. First, it is reduced by $62.3M after which SIAF gives 18.3M shares back to TRW, which increases the debt by $62.3M. So it's still $111M.
Or, 58 - 9 + 62 = 111
So far, how much money Tri-Way owes the Company?
Do you mind to explain me more about the line below:
Included in interest in unconsolidated equity investee, due from Tri-way Industries Limited is $59,814,070 and $58,572,766 as of June 30, 2018 and December 31, 2017, respectively. The amounts are unsecured, interest free and have no fixed terms of repayment.
Included in accounts receivable, due from Tri-way Industries Limited is $53,460,749 and $49,065,385 as of June 30, 2018 and December 31, 2017, respectively. The amounts are unsecured, interest free and have no fixed terms of repayment.
If you really want Solomon to succeed and make this company great, then support him, praise him for everything he has done for us, all the deals, all the people he have hired, his knowledge about aquaculture and beef operations.