SmallCap Network provides comprehensive research and opinions on SIAF.
Date: December 12, 2011
Aquaculture and Fishery Propels Revenues and Investor Interest (PINK:SIAF)
By Dennis Askew Published: December 12, 2011 9:01:57 AM PST
SIAF $0.50 +$0.05 +10.00%
SINO AGRO FOODS INC (PINK:SIAF) is looking better all the time as a “China” play for U.S. and Euro investors with good quarterly numbers, dividends declared, and a management team bent on strong corporate governance and shareholder inclusion.
A lot of investors ‘hit the road’ with Chinese plays in 2011 and abandoned their hopes, and shares, until the geographic play once again appeared ‘more friendly’ to shareholders. The “Emerging Market” shine of China declined amidst government regulations; fears of inflation; bad accounting practices that had shareholders scratching their head; and share valuation losses that increased as investors looked to India and Brazil for more stability.
But that didn’t mean that every company based in Hong Kong or Beijing was a tragedy waiting to happen and in my opinion, I think a lot of publicly traded Chinese companies ‘got the lesson’ and are now doing things differently.
Look at SINO AGRO FOODS INC (PINK:SIAF) which on Dec 2 said two important things to reassure U.S. and Euro investors: 1) the Company was “Actively Seeking” to add independent members of its Board of Directors for empowerment by June 2012 and, 2) it is now Management’s intention to develop a Sarbanes Oxley compliance driven audit function and develop a fully staffed Internal Audit Department that reports to the Audit Committee.
Both of these corporate moves are good signals that SIAF better understand the playing field.
Sino Agro deals in Chinese livestock, like beef, aquaculture, running a bog fishery, making feed and fertilizer from byproducts for farmers and plantation farming for vegetables and flowers. The Company’s Q3 revenues for the period ending Sept 30 were up 36% with a ten cent EPS. The “Fishery” revenue increased by $9,469,667 or 717.27% vs. $1,320,223 at the end of Sept 2010; the Q3 ’11 aquaculture was $10,789,890. The vegetable farming decreased $268,998 from $3,509,397 in Q3 ’10 and both the cattle farm and beef gained.
In another management move to get foreign investors interested again in the Company, on Oot 22 SIAF declared its second consecutive annual Cash Dividend payable in the amount of $0.01. That’s not a lot, but it is something.
Shares are currently trading in the $0.49 range and might be worth a look for new buyers and old “China” fans…
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.
Dennis Askew is a paid contributor of the SmallCap Network. Dennis Askew's pe
