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Consider for a moment what happens when shares are sold short.
The short seller has to borrow those shares from an existing shareholder or a broker/dealer who has shares held in a street name account. This borrowing actually doubles that number of shares in existence since both the lender and borrower are committed to the same shares. In order to close out the short sale, the borrower has to buy shares from another shareholder. However, in the meantime, if a long holder bought those borrowed shares in the first place, they, in effect, disappear from the float. If enough long holders, like hyperboy's group who are buying for retirement accounts, buy the borrowed shares, it is likely that a short squeeze will develop whereby it would be more costly for the short trader to cover.
The reality of this company is that it will be at least 90 more days until they start to receive revenue from the new products. In other words, volatility can be expected mainly caused by latecomers to the stock. They want a low price, and the way to get that is to create negative information.
Instead of more dilution, maybe by just delaying some accounts payable until the start of the next quarter would provide some capital. When I was running my business, I could always manipulate the payables, inventory on hand, orders and all the other variables and switch payments into the following quarter whenever I needed to. In this way, I could get the quarterly profit number I wanted versus being surprised with a bad number.
Selling A/R is also called factoring. I agree that would be a fast way to create a cash infusion. The cost would be steep, and it might effect earnings for that quarter, but it would solve a lot of other problems.
I have a different idea about the predictions for the coming year/s. There are over 20 cities in China with populations over 1 mil. I expect SIAF to create satellite farms in each of them (like what they did in Beijing) as well as retail/wholesale distribution. That would accomplish several things at the same time. Expanded brand presence, word of mouth, as well as rapid growth.
The attractiveness of farm raised seafood is only going to increase in the future. Chinese pollution is becoming a major global problem.
http://health.usnews.com/health-news/news/articles/2013/08/26/scientists-pinpoint-source-of-mercury-in-pacific-ocean-fish
Update today in the "What's New" page.
Beijing Cattle farm in operation.
http://sinoagrofood.com/?q=whats-new#beijingcattle
60 Minutes had a story on tonight about the probable real estate bubble in China. Because there are limited ways for the Chinese people to invest in the new economy, the govt decided to let people buy multiple apartment units. Unfortunately, that program was so successful that there are now "ghost cities", so called because they are completely built and sold apartment units but no one lives in them.
I would caution Solomon to tread lightly in any real estate projects. Probably a better idea would be to allow individual Chinese investors to buy a cow, have SIAF raise, slaughter and sell it, and have the investor participate in the profits.
I got us some free publicity in the "Shrimp News". This should have been done by the company if they ever get their IR act together.
http://www.shrimpnews.com/FreeReportsFolder/NewsReportsFolder/ChinaSinoAgrosPrawnFarm.html
I have been in contact with Bob Rosenberry of the "Shrimp News". There will be an article posted soon about the new prawn activity.
Our IR guy should get in touch with that SIAF shareholder who owns the "Shrimp News". Why not get some free publicity, and maybe a few clients for the technology.
The shorties may be running for cover today.
As I suspected, the short traders are hitting SIAF hard today. Time for HB and friends to step up and punish these parasites.
Each individual fund creates their own guideline about what they consider to be the least risky types of investments. For example, some concentrate on a minimum price where others eliminate OTCBB. Generally, the more risk a fund is willing to tolerate, the more types of investment they allow.
Nice end to the trading day. I expect the short traders will sell heavily in the morning tomorrow to try and recoup their recent losses.
The length of your post is only surpassed by the inept attempt to disguise the truth. Why argue the point when it is in black and white.
No short selling today, after the 200,000+ shares sold short yesterday failed to move the price down.
Over 200,000 shares sold short today.
http://otcshortreport.com/index.php?index=SIAF
Trading will close today at 1 PM EDT and the markets will be closed tomorrow for the July 4 holiday.
There was a massive amount of short trading today.
http://otcshortreport.com/index.php?index=SIAF
I interpret this as a "last bite of the apple". Soon, the short traders will be paying us all of their ill gotten gains as they lose day after day.
For you short traders who might be looking for the next play, take a look at PLPL. The price is up over 100% in the past few months after heavy pumping and advertising. They say in their PRs that they have a cure for the following list of diseases: Prostate Cancer, AIDS, High Blood Pressure, Malaria, High Cholesterol, and a few others for good measure. Have fun.
It looks like the short traders and manipulators have taken the day off. I guess they like long weekends in the summer.
Go to post #37847 for information about Leonie Restaurant.
My understanding is that not only the margin account shares are available for rent but that shares held in regular accounts that have a share registration in the name of the brokerage are also available. The only way to eliminate the possibility of the loaning of shares is to take actual possession of the share certificates and have them registered with the transfer agent as your property. One other possibility is to place a sell order at a ridiculously high price (for example, place a sell order for your entire holding of SIAF at $11 per share). This would cause the brokerage to hold your shares pending the possible need to deliver them to a buyer. The risk with that approach is that we all think the company is valued at much more.
What most people don't realize is that short selling actually acts to create new shares. Here's how: When shares are sold short, they are actually borrowed from an existing shareholder who holds his shares in a "street name" account with a brokerage. These borrowed shares must be returned to the owning shareholder eventually. However, in the meantime, the newly created short sold shares are again part of the float. They have a multiplier effect on the share count.
I finally figured out what is going on here. The manipulators who are shorting have discovered that due to the high profits that SIAF posts every quarter, it bounces back after every selloff. In other words, until something changes the dynamics of the situation, SIAF is their plaything, and they have their way with it time after time. They are happy to pick up 5 cents heee and there because they can do it several times a month.
The message board has been taken over by two types of manipulators. Those whose intentions are to manipulate the price, and those who are losing patience because of the slow movement of events.
I don't follow level II so don't have an answer about the MM's. However, I would guess that you could name the usual suspect (ARCA et al).
There are approximately 250,000 shares sold short at a price under $.41 or lower in the past three trading sessions. I see a short squeeze coming if there is just a small buying surge.
I think they have to import frozen barracuda. Have you ever seen the teeth, they would eat each other on the flight if alive. Barracuda is available from countries such as Vietnam, the Caribbean, and Indian Ocean areas.
California strawberry story.
http://www.sfgate.com/business/article/China-gets-a-taste-of-California-strawberries-3273022.php
The key to this market would be year round availability of California berries versus the Chinese grown ones available only in May and June.
Strength in the Chinese currency gives the company more buying power when buying seafood for import from Norway or Madagascar.
To get an idea about what the Penser meeting will be like next week, we can revisit the 4/26/12 meeting that was held in Stockholm. Most likely, the same group will be in attendance.
http://www.hotstockmarket.com/t/216429/sino-agro-food-siaf-ob-success-in-stockholm
Here - if you have not already read it - abstract from yesterday
presentation of Erik Penser, As you can see an abstract one rarely sees.
EXTREMELY positive.
Similar comments came from the other
centers / management company / analyst groups / Shareholders' Association we have had presentations.
Reasonably, it looks like (timetables are always impossibly difficult) if this
possible "golden egg" will soon be able to hatch out a 'golden chicken'
What can I say! To say that I am excited for this evening's Siaf presentation would be a severe understatement. Mr. Lee was most confident presentation of a full auditorium at Erik Penser in Stockholm, the same bank, who was a counselor at SEMAFO was listed on two stock exchanges in Stockholm. Mr. Lee told the audience that he plans to submit a proposal to the Board, to Siaf in 2014, when the company is, as he put it, "cash rich" (as it will be 2014 according to plan), will go from paying 8 % paying 50% of profits after taxes and expenses of dividend to shareholders. He said that after 2013 there will be no need for cash injections or funding -. On the contrary, Siaf have plenty of money and time will have come for the shareholders to be rewarded for having invested in Siaf plan is also, starting from 2014 to start listing a subsidiary each year on "a viable replacement." Discuss with Mr. Lee and Mr. Tan after the presentation, I realized that Hong Kong will probably be the preferred stock to spin off its subsidiaries. "And we can go on for 10 years," said Lee. From 2012 Siaf will have 12 cost centers (subsidiaries). "No one will sell their Siaf shares," he chuckled. As for the future road map, said Lee that everything is prepared for a listing on Nasdaq and Amex. In June-July committee of independent directors will be in place and that the only thing Siaf need for a premium listing is a stock that meets the terms, $ 2 (for Amex) or $ 4 (Nasdaq) depending on the currency we are aiming at. I understand, the Nasdaq is the preferred marketplace for Siaf. When we reach the necessary stock price, the list can be done in 2-3 months (not weeks). The goal is to provide up-list this year, 2012. The next goal will be a dual listing in Stockholm and Mr. Lee expressed his hope that this can be done in Q1 2013th As soon as the main list in the U.S., a further Stockholm listing does not take more than two or three months, "go on the fast track" to be prepared well in advance, as Mr Lee put it. There are some smaller clouds in the otherwise very light Siaf sky. The company will need to start paying taxes, probably from 2013. Mr. Lee said Siaf have to start paying taxes for every $ 25 of $ 100 earned. But Mr. Lee said he expected more of a total of 15-18% of the profits to be taxed on the average. Worst case scenario, according to Mr. Lee was 23% of the profit is taxable. Mr. Lee also commented on this year's financial targets, is $ 0.68 fully diluted. And the number of shares at the end of 2012 will be 82 million according to plan. Q1 report is expected on or before May 15 The Siaf business becomes less and less seasonal, as the HU-flower business becomes a smaller part of total activity. This means that Siaf business become more consistent on a monthly basis. Mr. Lee also said he predicts the higher prices, which Siaf are few at present, beef and fish will keep for at least three years for the fish and at least five more years for beef. When I asked Mr. Tan, director of fishing activity, how many more years Siaf able to grow by 100% over the previous year, he replied "at least 3-5 years." We talked about how many new fish farms, we could expect next year, compared to the four houses have already been announced this year. Mr. Tan said he believed that a growth of 150% was probably a realistic figure. In my book, that would be another six yards. But I must admit that the whole time I talked to these guys, I got the feeling that they are rather cautious in everything they say. It was very clear that Mr. Lee is very focused on creating shareholder value and that the shareholders really is his main goal in everything he does. Mr. Tan also mentioned that Siaf now receives $ 33/kg sleepy cod. Wholesalers add app. 30% at this price so that the consumer pays about $ 43/kg for Siaf fish. Mr. Tan said that about 1% of the Chinese population is rich. But hey, it's about 15 Mil. people, 15 mil. Rich people who are willing to pay higher prices for Siaf's fish and meat and shrimp. talking about the meat, said Mr Tan us to the next step will be to initiate the process to obtain the production of beef halal certified. Siaf plans to start exporting beef to the Middle East market where there are many wealthy consumers are willing to pay higher prices for Siaf's halal meat. Mr. Lee said in his speech that the plan is to sell about 5,000 cattle this year. Over all it was a very encouraging evening. I dare not guess where the stock price will be in the 2014th The only thing I can say is that I regret is already fully invested in Siaf. BUY the long term is not sufficient. I say ULTRA strong buy. Over and out from Stockholm.
It is almost amazing at the pace of growth. China is so big that even a small operation like SIAF is put to maximum capacity from the start and has to expand to meet demand. If they can keep the quality high, SIAF should have no problem becoming a billion dollar company within two years.
I don't think there is any downside to the price at this level. The shorts have been merrily selling all week, and the price has hardly moved a point. I am looking at a short squeeze and a move back to over $.50.
The main reason why there is short selling in this stock is the dilution. What these people see is a company that is short of cash which, from past experiences, indicates that the company is in trouble and close to failure. However, with SIAF there is a much different situation than that pattern. SIAF is in a hyper growth phase and has a positive use for all the cash it has, and then some.
Also, the quarterly revenue now exceeds the market cap and three of the five operating segments now generate enough cash flow to make them self sufficient. In other words, the short sellers will totally disappear later this year when either of two following scenarios occur. One would be the FN listing and the other the bond financing. Once the short sellers are done and gone, the share price will rebound to what we think are fair values.
Another 49,500 shares sold short yesterday. Obviously, they will be getting nervous about a short squeeze soon. Prepare for another move to over $.50 cents within the next few days.
Markets will be closed next Monday, so my guess is that all shorts will be covered by this Friday.
http://ww.otcshortreport.com/index.php?index=SIAF
A few thoughts about short selling.
1. The volume today is way down from what it was yesterday.
2. The lack of comments about my posting that site indicate that a lot of the posts on this board come from short sellers. They only post when they have negative comments. When the subject of short selling appears, they are quiet. In other words, they are like rate hiding in the dark. Shine a light on a rat and they run for cover.
3. Now that we know about that site that gives daily short volume, the shorts will have to think twice about any more selling. The more they short sell, the more vulnerable they are to a short squeeze.
Short selling yesterday: 232,253 shares.
http://ww.otcshortreport.com/index.php?index=SIAF
Live eels, lobsters etc fly next day air. Watch for the location of the SIAF processing plant in Madagascar to be located near the airport.