First of all, it shouldn't be a surprise that we are still trading down here at these levels. At the moment. Because Dilution/Dumpage is dictating the share price right now. We actually do have a lot of buyers but also too much dumpage. And uncertainty surrounding these matters makes it almost impossible for the share price to move higher, even with the recently announced dividend policy. That's one.
How do I get to $1.50? Because I have gained some experience in these matters in recent years. If they are distributing $1 of value then the market makers will beat it down by $1 on the ex-date. But what if we are not trading higher than $1? You see, that is not possible. When they are distributing $1 of value then the implied value of TRW alone is close to $3 per SIAF share. The market is not entirely stupid. Only 99%. lol.
We need an announcement. A Record Date. A filing, or a press release, to get this going. Then it could still be slow, and much faster as we approach the Record Date or Ex-date. I can't say exactly how this will play out, but it will be interesting to say the least.
During this process, they can't dilute. They have to keep the O/S steady. Perhaps not now, but in a few weeks from now.
Most people are still not asking the right questions. One of the questions you should be asking now, is, when/if they announce the Record Date, then how far will it be into the future? The answer, IMO, it could be anywhere between 0 and 60 days. Yes, the Record Date could fall on the same date as the announcement. That is what happened with the FABU/LSYN spin-off. And then the ex-date should be 1-2 weeks later. But, for SIAF I expect it to be early October. But what if it is sooner? Interesting, eh.
I don't want anyone to get their hopes up. But I think we will get there by October. And there will be a 2nd distribution. Which makes it a lot more interesting.
AI
