Sino Agro Food Inc (fka SIAF)

[Drexion2004]

I wasn't talking about SIAF at all since their big profits are in the future (Q3/etc), just CGS companies in general.

Its all a matter of Return-On-Investment. Say you have a company that earns $1 EPS that is trading at $2. Every penny they spend in a buyback gets a 50% ROI and has the same growth-profile as the current business-platform going forward. The only reason to spend nothing on a buyback in this scenario is if the money can be spent in program that gives more than 50% ROI (You won't find such lying around, 50% is simply too high).

Of course, if the 'current platform' has a negative growth profile such that the $1 EPS is not sustainable then yes, that plays against the buyback idea.

-Fernando