Sino Agro Food Inc (fka SIAF)

[RealDutch]

Well, not necessarily a scam - they can spin of Tri-Way because the numbers for SIAF is floated (and still give us a decent return on investment). Hence, as you put it, being a scam is a very large grey area.

The partially-scam-still-creates-value theory doesn't work well in practise. Because companies get delisted (can't happen to SIAF), they get entangled in shareholders lawsuits (hasn't happened yet), they are fed up with the shareholders (getting there), and go dark as a result (can't see it happening for SIAF). So the stock will be worthless to you. I've seen it happen to a number of good companies. And they were not scams.

But you are right. The spin-off gives us 2 chances.

I was reading up on carve-outs a couple of days ago. Turns out that 90% does not create shareholder value. We belong to the good 10% though. The trick appears to be to make the carve-out completely independent. And do an IPO. Perhaps this is why SIAF is reducing their stake below 20%. They are doing it "by the book". It will probably still take years though for Tri-way to become fully independent. As SIAF is still operating the farms. But that seems to be the plan.

And the SJAP carve-out gives us 3 chances.

I still sense though that SIAF could be bigger than any carve-out in the long run. If you look at the prospects for licensing/partnering deals. The wholesale centers. Import/Export. And then we own a chunk of the carve-outs as well. I would like to see SIAF succeed, as a company. That the people in HK will be loading up with Tri-way shares after the IPO doesn't mean much to me. Of course the money is good. But we want more in life, right. And I'm sure Solomon wants it too.