Sino Agro Food Inc (fka SIAF)

[ValueInvestor01]

The PE of 10-12 is the value used by the appraisal firm, but for sure is a number one should discuss. There are several factors here; management (expect a lower PE if TRW don't get a different management than SIAF), interest rate (expect a lower PE if interest rates go up, which they will in the short term and possibly in the long term as well), growth (PE of 10-12 would be way too low if TRW is able to demonstrate decent growth also for the 2-3 years till listing), market place (HKSE vs OTC for instance) and so on.

Assuming that TRW is able to continue a nice growth and also not suffering too much turbulance of its net income, then a PE of 10-12 would be very conservative in my opinion.

I would take the PE of 10-12 value used by the appraisal firm with a grain of salt. But I agree with most of what you said above. I think it's too early to value this company and give it an appropriate P/E.

What long-term goal (PPS-wise) have you set for your investment in SIAF and TRW?

There's only 3 ways I would sell:
1) When I see further deterioration on the managements or the business.
2) When the intrinsic value of the company shrinks to the point that it's no longer a bargain.
3) When the price reaches close to its intrinsic value.