Sino Agro Food Inc (fka SIAF)

[treit2002]

More upside down world stuff, led by RD off the reservation again.

The company came up with an innovative dividend policy, as a shareholder friendly move well over a year ago. Half the dividend would be paid in a convertible note. This saved the company cash, yet still provided a very good dividend yield, quite uncommon for shares in this space. The other half of the dividend is cash.

The company had to jump through hoops to get a good legal way to honor their commitment; they found one, and implemented it. Now you get 6.8% of the value of current shares, increasing to 12% if you hold your shares another year.

How this is bad escapes me.

How do you think people would react if they announced they were scraping the plan and were halving the dividend?