Sino Agro Food Inc (fka SIAF)

[treit2002]

since the Q1 filing came out which showed 4 million shares diluted

Volume has been approximately 4M shares since the Q1 cc.

I don't really understand issuing shares when it's only a small percentage of capital expenditure anyway. But I expect that strategic decisions are made to grow while the growing is good, so commitments are made with the hopes that the share price will be higher. It cannot have helped that the last two years have had severely limited HU harvest, a cash business.

The share issuance on the margins of expansion capital do not seem worth it to me -- certainly not as a shareholder, watching the shares decline -- but neither as long term payback.

However much I'm unhappy or unsure about the issuance, I can live with managements' decision, on the operations/finance side, as the eps are growing MUCH faster than the share count. In fact, with retiring shares the issuance may not even dilute earnings.

The real damage to share price is done more by the perception the issuance creates and by the share overhang, when debts are paid in stock to people who need the money.

My question is how long does a 4 million share issuance take to be absorbed?

And question 2: if/when will an uplist/dual list perception -- combined with consistent 100% growth -- overtake the "dilution" concerns?