Sino Agro Food Inc (fka SIAF)

[ValueInvestor01]

Agreed. If TRWs profits are stable at 40MUSD (or whatnot) then it doesn't really matter whether it cost 500MUSD or 200MUSD to build (unless TRW is able to sell its assets at cost that is, i.e that we have a margin of safety in the book value). So the idea

Completely agree! So investors are getting fool into believing that just because TRW was cost 390M+ to build and they are distributing its shares to shareholders, does not necessarily mean that it should be valued at such. The numbers below would not equal necessarly equal the market price.

The reportable value of TRW shares being distributed to SIAF shareholders on November 14, 2018 is US$1.33 per each common share of SIAF based on the assessed value of USD 3.40645 per TRW share

However, as RD pointed out; a PE of 10-12 equals (by coincidence) the "investment at cost" (I don't think RD would dream of valuating TRW at 3.4$/share based on "investment at cost" unless it matched a fair PE - I think there has been a misunderstanding there)

RD and I talked about this already, what makes you think the P/E of 10-12 is the appropriate number for the company? There is a lot of uncertainties to come up with that conclusion.

IF a PE of 10-12 is fair then TRW should have a value of 350-420MUSD or 3.5-4.2$/TRW-share. Take 18.3M TRW-shares devided by 42M SIAF-shares (49.3 + possible more dilution - collateral) and you have 1.5-1.8$/SIAF-share in TRW-distribution alone (someone might want to look up what TRWs net-income was)

But that's only IF the P/E of 10-12 is the appropriate number to value this company.