HOTSOCKED features Sino Agro Food, Inc. (PINK:SIAF) Jumped Up from the Six-Month Low
by Violeta Slavtchevska
Nov 29, 2011
Sino Agro Food, Inc. (PINK:SIAF, SIAF message board) share price fell to a six-month low on Friday last week, but yesterday it recovered with a sharp jump up. The latest financial results showed increase in net income and sales, but also higher current liabilities.
SIAF closed Monday session at $0.55, which is a 17% increase from the previous close. The trading volume was higher than the average for the past three months with 295,005 traded shares.
The volume does not seem strong enough to imply that SIAF would end up the downtrend and start appreciating immediately.
Latest news from the company was its 10-Q for the quarter ended September 30, 2011. According to it, sales have increased over 36% compared to the same quarter last year, even though the company closed up its dairy segment at the beginning of the year. Net income from continuing operations is also much higher with over $8.1 million, while the basic earnings per share more than doubled from $0.05 in Q3 of 2010 to $0.11 in Q3 of this year.
At the same time, SIAF reports multiplied current liabilities due to additional "other payables" the larges part of which represent payments for land use rights. As the assets have also increased, however, the working capital surplus is still higher than the same quarter last year, exceeding currently $45 million.
SIAF share price fell below $0.60 in the middle of the month after one of the company's latest 8-K filing announced the issuance of nearly 7 million shares to an investor in exchange for the settlement of $3 million in accounts payable of the company. Still, the current market cap is only $36.4 million as SIAF has only $1.5 million in cash and the largest part of its assets represent receivables and land use rights.
