Very much agree with your sentiments, though I simply don't think a PEG ratio valuation will ever apply to an ag company.
But before we ever get a p/e of 20 -- if ever -- we have a lot of work to do to get to a p/e of 6, 8, 10. Looks like you'll be a SIAF millionaire in late 2011 with a forward p/e of about 9;not bad, yes?
That would be a 6 bagger from here, so talk of 20 baggers plus, is just premature, imo, and over optimistic -- unless -- SIAF not only dual lists, but also transforms itself in some way beyond currently anticipated business operation growth and vertical integrations.
It is possible that SIAF will make a giant leap forward, at some point. But in 2011 and probably 2012, we are laying the groundwork. Concurrent with operations growth and attendant financial rewards approaching 100% earnings growth, SIAF must separate itself from the stigma of its sector.
Clearly, the Form-10 approval is first.
The dividend was a great step. There will be a press release every year that the dividend was doubled +/-, because it is essentially indexed to income. Very smart move. Raising the target percentage a small amount is not a bad idea either, though I'd prefer to see other shareholder friendly measures, including a share buyback. This would be particularly attractive if coupled with low interest loans to fund cap ex and business expansion. This would gear the company to greater leverage and even faster growth, but could be done quite sensibly I think -- especially and critically -- after the 2011 target of 4 new fish farms built is contracted. Then, down the line, any potential equity raise at higher prices might dilute only as much as the share buyback was accretive to earnings.
I agree that the dual listing would be the single greatest boon to a more realistic valuation. And from what Strindberg says, it would be pretty easy. I encourage everyone to lobby the company for the dual listing.
