Sino Agro Food Inc (fka SIAF)

[slyestjester]

Viking--We disagree on a number of issues. Most importantly, I'm not concerned with the permanent increase in the number of shares for all time because at least the number is fixed whereas the capital generated, as the result of compounding, is increasing forever.

I believe SIAF can issue at or near the value of expected earnings without serious ill effect, and in fact will generate a positive return in the second year and thereafter.

Pretty clearly Solomon can not issue shares currently with earnings expected in the $1.00 or above range for this year. I believe that is why he is listing on FN. He needs to get the share price up to $1.00 to even consider further issuance.

If he does get the price to $1.00 (but not above) and can not issue a bond, it will be interesting to see what he does. Clearly he knows there is profound opposition to further issuance at the level of eps and that investors are deeply unhappy with the stunted share price. But he also is strong-willed and wants very much to complete his 5-year plan.

I plan to stick with him either way as long as the return on investment remains in the stratosphere. But I have a strong feeling dilution may be over for good.