Sino Agro Food Inc (fka SIAF)

[jyyoo]

RealUSA, how are you arriving at your dividend yield calculation?

If each preferred share pays out $2.8 every year on August 15th, and it costs 112 common shares to convert to a preferred share, then it would cost (112* $.24 = $26.88) for each preferred share. So each preferred share costs $26.88 and you get paid $2.8 every year on that preferred share so $2.8/$26.88 = 10.4% annual yield.

Are my calculations wrong? Because if not, that makes a significant difference in your argument for the attractiveness of converting, 10.4% vs. 2.5%

Regardless, I do agree they must believe the stock will not be below $1 soon, which likely has to do with financing or the CA contract they've mentioned. Hopefully there's news soon because there won't be much interest in these shares without it. I would also keep in mind even RD has become very bearish on the stock lately which if anything should be a buy signal..When you look at the technicals, we've broken the 200-day moving average so clearly the trend has turned not to mention we will finally have growing earnings and share count reduction this year.

If the dividend is 2.80/112 shares = 2.5% yield.