Sino Agro Food Inc (fka SIAF)

[jyyoo]

Depends on your holding time line. Short term 1-2 weeks maybe moderately risky, long term >6 months, relatively safe. But if you think about it from the short side perspective, as a short seller one of the main risks is catalyst risk which is enormous in this stock due to ongoing financing talks. And everyone can say the loans will never come or they should have come months ago etc. etc. (they said the same thing about the cash dividend policy announcement) but these are from people who have never done business in Asia and management themselves is saying they are still ongoing and close so it doesn't matter until it does.

If one's timeline is relatively long, one could buy this at .30 cents which is showing short term support and because of the 33% ($.10) dividend yield, you'd be "in the money" until $.20 cents. As long as shares keep hitting the market the stock will be under pressure but there are clear buyers absorbing the shares and from a technical perspective it has never resisted such selling pressure better than this which is likely due to the cash dividend bringing in these new buyers. People have speculated we're near the end of the last batch that was given out and if that is the case the price should move up quickly. The company clarified their new share issuance policy going forward (once this batch is done with). Hopefully with financing closing they will be able to give us a hard outstanding share count number.

The Company has adopted austere measures to reduce its dependence on equity funding by approaching it as the exception rather than the rule when it comes to determining which modes of operation are necessary to maintain the Company’s outlook over the next two years.