Sino Agro Food Inc (fka SIAF)

[RealDutch]

You don't seem to be that into the "living on dividends" idea

Not for now. I owned a stock until yesterday that I expect to pay a dividend yield of 30%. But the stock was up 90% from its low yesterday so that was giving me a problem. I'm not going to watch the stock drop 30% or 40% from current levels while I wait for my dividend, which isn't a certainty. Not while SIAF is about to rally...
So I dumped it yesterday.

I guess you have a strategy

I sure do. It's certainly going to be a problem if SIAF trades at $30 or $60 which could happen by the end of the year. Because there are a number of events that could cause it to drop 50% - 75% from those levels. And you won't be happy when that happens.

So, I prefer to keep SIAF below 50% of my holdings. I think you should do the same. Luckily, there are a few profitable companies out there (OTC) trading at a P/E of 0.5. Remember SIAF used to be down there as well so it's still a good time to diversify a bit now. Some of these stocks were crushed the past year, I think it could be for the same reason that SIAF did the reverse split (a lot of penny stock forced selling).

Anyway, it depends on your situation. If you don't have a lot of money, and job security, then you might as well go all-in on SIAF. But I think job security is an illusion. Anyway.

So I want my other stocks to perform equally well so I don't have to sell SIAF at $30 or $60. All this time I will cover my butt against a market crash because I don't want the whole bunch to drop 50% or more on me. LOL.

Dividends is not going to save the day for me. A balanced portfolio and proper money management will. And don't ask me which stocks or how or when because all that information is available on the China Unlimited board.

So, I have 6,500 shares now. I plan to hold on to 5,000 as long as possible while using the other 1,500 as dividends in the coming 1 to 2 years.