Sino Agro Food Inc (fka SIAF)

[RealDutch]

There's another way to determine fair value. We start with book value or a P/E of 20 and then apply all relevant discounts. Although a bit arbitrary, still insightful.

Fair Value = $10

Discounts:
- Quality of management : -50%
- A-shares : -50%
- Chinese : -50%
- Risk of dilution : -50%
- Risk of going dark : -30%
- Corporate governance : -30%
- Corona : -20%

Premium:
- Growth : +50%

Then fair value = 10 x 0.5 x 0.5 x 0.5 x 0.5 x 0.7 x 0.7 x 0.8 x 1.5 = $0.37

I am somewhat troubled that we are trading at 0.06. When we were trading at 0.18 I said 0.05 is possible if... they go dark....