Sino Agro Food Inc (fka SIAF)

[snow]

Strindberg

I have now followed your advice and sold my remaining 50,000 shares. For one thing, I find your reasoning convincing. One reason who I have not sold before is for diversification purposes. I think that the most likely scenario is that not much of value to shareolders will happen during the next six months. But SIAF has interesting potential as a long-term speculation. I regard it as quite uncertain if a very positive scenario will materialize. I have gradually lost faith in Mr Solomon. He gives an eloquent and lengthy glowing picture of the attractions of the milk business early in 2010. A year later his attitude has changed a lot. I doubt that the situation has changed so much in the space of one year. Moreover, when will SIAF be paid for the sale? When the new owner has generated enough profit to pay?

My impression used to be that it was not necessary to enter the path of dilution to realize the business plan. The reality is that the sharecount increases very fast. To me it makes little sense to acquire more property that is needed now and pay for it by selling shares. Neither does it make all that much sense to pay a cash dividend and pay for it by selling shares.

The other side of the coin is that I invested the money I got from the sale in a company that to me seems to have much more potential than SIAF both short term and long term. This company is able to convert waste plastics to diesel and gasoline. Getting 20 % of the North American market would seem to justify a pps 100 times the current one the way I see it. The ticker is JBII.