Imagine that Penser has someone that wants to invest quite big in SIAF. Lets say they want over 15% of the company.With this intention they can get all the info they want, and Solomon will stop dilute!
Thats 16,5 million shares.
They can either buy the shares over the market, with no funds ending up in the company. Price? Any guess?
Or, they put all their money in the company and get new shares.
They need then maybe 20 million new shares. Lets say they pay
2 dollars. 40 million usd.
What will then happend to the share price?
P/E 2, or maybe 5?
They will get lets say 8% of result 2013 in divi, hmm, can it be
5 maybe 6 c? 2,5 - 3% cash back in 2013, the double in 2014?
Can we please try to think out of the box instead of finding if Solomon lied in 2011? Can you see beyond that financing has been done by issuing shares?
Do you think Solomon has a goal other than issue new shares?
