Pretty much agree that this is the problem.
But for the "real" Chinese companies, earning real money the valuations make no sense. Some Chinese companies trade at a forward p/e of 1, but some at 5 or more. I can only conclude that that is a measure of whether the market believes they are real or not, that their earnings are real or not, and/or the projections are outlandish.
In general, I would think that the valuation metrics will trend toward 1/2 an international norm (say p/e of even 5) over time, for the 90% of companies that prove themselves, even if 10% falter. It would help if very, few if any outright frauds are newly discovered.
Why is SIAF more credible/different? IMO,
1) dividend
2) current FORM-10 stringent approval process
3) much higher, believable projected growth
4) Jordan Fund
5) improving IR, company communication, videos, etc.
6) they've pretty much done what they've said they'd do; met targets in the past (admittedly, the dairy sale was a surprise, but obviously they couldn't signal it in advance)
7) restricted selling shares to > $1.50
The company will consider steps to demonstrate their integrity, within prudent business practices. This was the idea behind raising the dividend.
Any suggestions?
AI
