Hotstocked feature: Sino Agro Food, Inc. (PINK:SIAF) Trades a Six-Month Volume High
by Violeta Slavtchevska
Nov 9, 2011
Yesterday, Sino Agro Food, Inc. (PINK:SIAF, SIAF message board) traded unseen in the past six months number of shares in one session as a result of which the share price closed with a decline from Monday close. There has been no news since last Monday and the share price had entered into a narrow trading range.
SIAF closed the market yesterday at $0.67 for a share, a 3.60% decline, while the trading volume exceeded 869,000 traded shares - more than four times the daily average for the past three months and the highest share turnover for the past six months.
The next few sessions could possibly show if that will be end of the downtrend that SIAF has been following in the last 52-weeks.
Latest news from Sino Agro Food came out last Monday when the company announced in a press release that it has initiated application for quotation on the Over the Counter Bulletin Board. Also, SIAF said that it had enrolled in Standard and Poor's Market Access Program and Stock Report Coverage and Compliance Program. Those efforts, if brought to an end, should actually improve the communication with investors and add credibility to the company.
Intraday chart shows that some still unknown but significant event could have happened yesterday at around 12 pm - at that time SIAF share price jumped to $0.75. That could be related to the expected cash dividend in the amount of $0.01 for every issued and outstanding share. The dividend payment was announced on October 26, 2011 and the distribution date is next Tuesday.
Like many other Chinese stocks, SIAF probably also suffers from uncertainty and mistrust as far as its market valuation is concerned. As of end-June 2011, SIAF reported assets for $114 million, $73 million of which liquid, and no long-term debt. The sales more than doubled in Q2 of 2011 as compared to Q1. Yet, market cap is now only $42 million.
