Sino Agro Food Inc (fka SIAF)

[treit2002]

EPS will be higher next year than it would have been without the share issuance.

100% wrong. Earnings will be higher. Earnings per share will be lower. Unless you can explain to me how the return on $15M (15% of total cap ex) will offset the the total earnings being divided by 42% more shares, 100M vs. 70M. $70M in earnings is reduced from $1.00 per share to $.70. How could the $15M from marginal cap ex return $30M in first year earnings?

Share issuance does not effect eps negatively.

Same statement. This is just wrong.

You can argue that without share issuance eps would be higher in the end (e.g., after ten yrs), but eps will rise more quickly with issance in the short term.

Same statement again, even more wrongheaded, as theoretically with unprove-able assumptions you could argue accretion in ten years.

I'll go with math. If you want to be a Solomon apologist on this issue, just saying things you want with no backing doesn't really cut it.

Solomon is growing as fast as he can. The excuse for the issuance being higher than expected is that he made commitments to meet his growth targets assuming a share price higher than it was. He can't make that mistake again. And he won't if the FN listing helps either the share price or financing alternatives.

The overhang effects long term aswell as short term longs, but the eps dilution effects pretty much only the long term.