Replies to post #69439 on Sino Agro Food Inc (fka SIAF)

[stolpen]

"When you get above interests rates of say 10% it doesn't make a lot of sense to take on debt to pay for dividends"

One can hardly argue against that but its far from the issue at present, the issue are credibility.

If you can´t announce a sustainable dividend policy or scrap an unrealistic one making good on promises already given. And if you are unable to foresee this years in advance or plan ahead for financials or feed the mouth out of ones wallet there are numerous problems of competence that should have been addressed in the 5 year plan already. The inability to spot all failures and remedy them under a 5 year period on the financial side is at best telling you that Solomons economic education are utterly useless and his abilities to manage way beneath the bar at the very least imo...

[MaterialMind]

When you get above interests rates of say 10% it doesn't make a lot of sense to take on debt to pay for dividends. IMO.

Do you have any gut feeling about up to what interest rate it would make sense to take on debt in order to acquire a larger stake in FF2/PF2?

[modes948]

Unfortunately it makes a lot of sense even at 25% or even more for dividends and buybacks, cause then you can sell shares at much higher prices and the benefit is much higher than the extra interest.
Why they are not doing it, remains a big puzzle at a time when they are still diluting.