Sino Agro Food Inc (fka SIAF)

[treit2002]

Second part is if SIAF as a company will be able to attract large money that will be willing to invest and to pay some multiple of EPS. In this area its one large fail so far.

Many here seem to think that absent the dilution, the company would be rewarded with a reasonable multiple, based on fundamentals and growth.

I agree that dilution from marginal share issuance detracts from eps and creates share overhang. And absent that, or some reasonable alternative, I think we would get a healthy bounce, but not a straight jump to a p/e of 4, then 8, let alone PEG (which is ridiculous).

Those kinds of valuations require a demonstrated corporate maturity that the company is tracking. It needs significantly higher revenues and NTA to attract the larger purchasers. And it needs to be on continually more prestigious exchanges. These issues are clearly being addressed. The path is there, starting with the FN listing, and soon enough the 2013 believable projections of >$250M in both revenues and NTA. These are significant markers of critical mass, imo.

The multiple will also assess the quality of earnings and the financial flexibility of the company. This means that the "more normal" p/e multiples also look at cash balances and cash flow. Again, the company path is moving pretty fast toward these ever improving metrics.

But it is not an overnight process. The company will grow revenues from continuing operations from $11M in 2010 to something approaching $500M in 2014.

Probably can't be any faster than that. Anyone know any other company with that kind of trajectory?