The main reason why there is short selling in this stock is the dilution. What these people see is a company that is short of cash which, from past experiences, indicates that the company is in trouble and close to failure. However, with SIAF there is a much different situation than that pattern. SIAF is in a hyper growth phase and has a positive use for all the cash it has, and then some.
Also, the quarterly revenue now exceeds the market cap and three of the five operating segments now generate enough cash flow to make them self sufficient. In other words, the short sellers will totally disappear later this year when either of two following scenarios occur. One would be the FN listing and the other the bond financing. Once the short sellers are done and gone, the share price will rebound to what we think are fair values.
