Sino Agro Food Inc (fka SIAF)

[treit2002]

Dividend news coming at September briefing.

The company's market cap is now about $40M.

They sold the dairy for $45M, about 1.5x revenues and 3x gross profit.

Based on 2010 $/HU piece sold, 60M - 75m 2011 projected yield, stated confidence in fast growing harvest due to plant maturity, $7M capital improvement coming to semi-greenhouse, and adding drying facility capacity to 120M pieces, HU alone will do $20M+ in 2012.

At 1.5x revenues and 3x gross profits, if SIAF decided to sell the HU business (perhaps contracting to buy the flowers for retail franchisees), they'd get $30M - $37.5M. This does not account for faster growth than the dairy, automatic growing yield of existing plants, any new acreage planted, nor anything at all for asparagus.

Certainly don't expect a sale, or even think it's necessarily a good idea. But the asset value is there, and growing everywhere in the company.

Do wish they'd prioritize cash balances a little higher, as well as willingness to borrow to expand.