How does the equity financing surprise anyone? Solomon has been forthright for a whole long time about how much equity financing there would be, and when it would stop. Now, we have the bond offering possibility that can only help that situation.
Yet, every time the pps goes down there are endless posts about dumping, and in one case about personal savagery.
We know that equity financing is a fact of life for SIAF shares. We know that overhang is diminishing, and that further issuance will end; maybe already has, if a bond deal comes through.
It does not take a genius to multiply some fish and beef numbers, and then apply a ridiculous p/e multiple that is suitable only for a mature cash flow positive, cash rich company listed on a major exchange, and then to call the architect derogatory names because the pps isn't there. Of course it isn't. And more pertinently, perhaps the pps would be higher without the financing, but the revenue and eps numbers would not be either.
It's quite another thing to envision diverse and vertically integrated operations, and manage them through the pitfalls of all businesses (disease, construction delays, inflation, weather, etc., etc.) to meet gaudy financial numbers and meet dual listing criteria.
Any reasonable p/e multiple, PEG being completely out of the question, will take continued realization of the plan, including cash flow positive and dual listing. That's why the valuation metric scores so well now.
There's still plenty of work to be done, and the shares do not yet command an audience that believes the work will be done.
If you are long a core position with a long term view, presumably it is because you believe the CEO will execute on the plan he's let you know about? And he is.
AI
