Sino Agro Food Inc (fka SIAF)

[slyestjester]

Snow--We can think of 'marginal investment' in different ways; it doesn't matter as long as we each understands what the other is talking about. The financing shares are being used to finance a variety of things but they are not going into land purchases or used to make loans. So strip those items off SIAF's balance sheet and look at what the return is on the remaining assets. It is extraordinarily high, almost 100%, and that's what allows Solomon to use financing shares without significant earnings dilution. And in answer to your question to Viking about what happens in the second year, as long as shares are issued above or close to the level of expected earnings for a year, in the second year and thereafter the financing shares are IMO accretive to earnings, and increasingly accretive as time passes.

That's just my opinion based on what I see based on past performance, but it's possible that what we are seeing now will not be representative of the future. That's always a risk and would make a good question for Solomon at the next CC.