Sino Agro Food Inc (fka SIAF)

[treit2002]

Do you agree that dilution above PE 1 is accredetive?

No.

If SIAF issues new shares at a p/e of 1.5x 2012 earnings, that's very close to $1.00 per share. Again, without dilution in 2013, assume SIAF will make $100M with 100M shares or $1.00/share. If they raise $15M with 15m new shares, they must make more than $15M -- 100% return -- for the issuance to be accretive: $115M earnings divided by 115M share.

Better, but not good enough. imo. At about $1.50 per share, it becomes perhaps plausible. At the very least, the overhang problem is dramatically reduced.