Bold predictions indeed.
They are targeting increasing revenues 6 fold for continuing operations 2011 over 2010, and tripling from there in 2012 and doubling yet again in 2013.
Obviously, the market takes a wait and see outlook.
But 2012 targets becomes much more believable if/when 2011 meets its targets; likewise, 2011 becomes much more believable as quarterly numbers show arithmetic growth, and guidance is reiterated. In fact tripling revenues from a much larger base in 2012 figures to be easier than growing 6x in 2011, because the businesses will be established; concepts proven; profits shown.
The business models have always been scalable, so again, the gaudy predictions can happen.
SIAF outshines all other U.S. listed Chinese companies for two basic reasons:
1) They put out a multi-year plan showing huge growth; not "just" 30% + put on record plans to spin out subs to Asian exchanges to realize proper valuation multiples
2) They've taken steps to distinguish themselves from the bad actors depressing the space (dividend, raising dividend target, current SEC scrutiny, long term international ownership)
Should be fun to watch. If they meet targets -- and we now have new reason to believe they're realistic -- we have a sure 5 bagger, easily more.
If they meet targets, in 17 months they will have increased revenues 15 fold over two years; earned $1.00 / share; guided $2.00 eps and $.24 dividend. A backward p/e of 4 for a company showing and guiding four year growth in the triple digits EACH YEAR would be remarkably low by any view, yet would still be a five bagger from here.
AI
