Sino Agro Food Inc (fka SIAF)

[ks1977]

Well, let's assume that TRW is unable to get a loan and that we will not get the growth story we're looking for. Assuming 40MUSD in profits for 100 million shares, that leaves us with 0.4$ in profit pr share. We're looking at 0.8 TRW-shares in dividend per SIAF-share, i.e 0.3$ in profit.

A P/E of 15 (6.8%) seems reasonable if there is some growth, but let's say a P/E of 6.7 (15%) - that should be very conservative. Then our dividend shares will be worth 2.68$ or 2.14$ pr SIAF-share (disregarding the TRW-shares left in SIAF, as well as the value of CA etc).

Even with extremely conservative numbers and a "worst case" scenario, SIAF is still a good buy.