China Growth Stocks

[CSykes]

SIAF- Take a look at the cash flows in the audited 2006-2007 financials. Those cash flows have improved since, but keeping it on the real side, it's best to look at what we know has been audited.

$7.8M in Deposits and prepaid expenses
$3.8M in construction
$5.4M in purchases of property/equipment

Even after that, plus other expenses, they had $358K in cash left over in 2007, which is the first year of operation. 2008 saw a lot of construction and expansion completed which will increase revenue/profit. Keep in mind, China Agriculture projects get 33% in subsidy rebates too, no tax etc..

They don't appear like they need any external financing when their retained earnings are stellar. If they did, they can leverage the land use rights for bank loans. If you review the 2006-2007 audit, you will see all their debt is bank debt.

As for the dividend, less than 7% of the common stock is publicly available (the float is small). There are no preferred shares issued, all shares, including the merger shares are common. 93% of the dividend will go to insiders and the original Asian investors anyway.

So, the dividend is just a little extra icing for us public holders, nothing more.