Sino Agro Food Inc (fka SIAF)

[RealDutch]

It's not that simple. The first thing one has to avoid in this sector is stepping on a landmine. It's probably not an issue for SIAF although I don't like some of the things I'm seeing.

Then, it's always possible for a Chinese company to drop from a P/E of 2 to a P/E of 1. Which means you lose 50% or more on your investment. And if it turns out that EPS will be $3 next year then that means we will hit an all-time low on the stock. So that's where the risk factors come into play that I mentioned.

There are/were quite a few decent companies that have dropped to pennies. Either because the shorts destroyed it, or because the shareholders filed lawsuits, or because the BOD got into a fight internally. They end up going dark or the shares revoked because management simply doesn't care anymore.

Fraud is not the issue anymore. There is a whole bunch of other stuff that determines who will win and who will lose. So you have to take a very close look at the risk factors, is what I'm saying. And SIAF does have a few. And most people don't acknowledge it.