I meant 50% eps growth 2013 over 2012. It's hard enough to project 2013, let alone beyond.
We can all see that the model promotes growth. But we've yet to see the first report of income from distribution, though it has started ahead of schedule. And retail has not even begun. We are even unsure about how many fish farm contracts will be signed and worked on in 2012.
So, the growth rate in 2014 would be based on even more guess work.
You do not see really any companies guiding more than a year in advance.
But what I would love to see SIAF do when issuing 2013 guidance, or when they are in a position to address institutions or analysts is make a statement about not only the sustainability of their earnings, but the sustainability of growth that is inherent in their models.
To grow earnings, most companies have to grow revenues and maintain margins. Because the fish and cattle farms all have a several year ramp up to capacity -- and more importantly because SIAF will have increasing equity shares -- income growth is already baked into the cake, particularly post 2012, more so post 2013.
This is pretty much a unique selling proposition. It's one thing to project $1.50 eps vs $1.00 YoY; it's quite another, much more credible projection when this model is communicated. The eps growth will happen automatically.
Each year, each FF will sell more fish (automatic eps growth factor #1); there will be more FFs selling fish (automatic eps growth factor #2); SIAF's ownership stake in each FF will increase (automatic eps growth factor #3). These factors are multiplicative.
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