Sino Agro Food Inc (fka SIAF)

[RealDutch]

You are putting them in a tight spot which they already are

Perhaps I have to repeat what I said 14 months ago. THEY DO HAVE THE MONEY. lol.

CA will get some contracts if they don't have them already. There will be some debt repayment of the $112M owed by TRW.

This is all a matter of planning, and as I said 14 months ago, a matter of PRIORITIES.

SIAF is a different company since the carve-out of the aquaculture assets. TRW will be the fast growing company now. SIAF will be the holding company paying dividends. SIAF will not grow by much unless... they get a certain percentage of future profits from cooperatives. CA could sign a number of contracts though resulting in some decent profits/cash flow for years to come. Abroad, they will be a seller of technology/filtration systems. They will not invest in new projects.

Everyone knows why they had to dilute and why they don't have the money now. They overinvested in TRW and didn't get the $100M loan. It's probably the TRW trade division.

The TRW trade division btw could have $100M in revenue fairly soon. That's at least another $10M in cash flow every year for TRW. If they can get a loan for it, they can double it. This will become an important part of TRW's growth plan/story/strategy, and, potentially debt repayment to SIAF which would again result in cash dividends from SIAF. That's why I said, not everything is lost from dilution. We will get some of it back.

As for the rest of SIAF, there isn't much to invest in (capex). Except some plants and flowers so that the plantation can generate some cash flow as well. The beef sector is dead. And I think we should be glad.