Replies to post #91977 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

There are any number of reasons why it might have been late: 1) Solomon was traveling 2) Everyone forgot 3) No one particularly cares about observing timelines 4) EC was unavailable to consult 5) they were debating a 1% or 2% payout, etc.

I would put my money on 2) and 3) :-)

Some people like me invested large sums of money in this company years ago on the dividend expectation as I knew I would be reaching retirement age. To see now that the company is not providing what it promised when it clearly has that capability is shameful.

Yes, it is. I also think the Mega Farm is a good excuse why they need more capital now. Problem is, even without that excuse you still wouldn't have gotten a dividend.

Well, they could have focused a bit more on cash flow and a little less on profits, and we would all be better off I guess. The thing is, if they do any of the things that have been suggested on here (give guidance, tell the growth story, do an asset sale, share buyback etc, things they can control) then you wouldn't be upset about the dividend.

[Carog]

"Why dont you that complain put together your own dividend policy and let the board analyze it given the fundamentals of the company and we can see what you come up with."

Carog--Unless the five year plan was a piece of fluff that he never intended to carry out, Solomon thought five years ago when SIAF was in it's true infancy, when they held almost nothing but the dairy, that he could manage 8% of earnings as a dividend. It's ridiculous to think that the company is incapable of that now no matter how many moving parts. I don't care if SIAF is a growth company, 8% is nothing and providing it would mean that they were at least belatedly keeping their word. First they said the 8% could not be provided over the last five years because of depressed Chinese equity prices, but the expectation was that when the five year plan was completed, they would return to the original dividend plan. In the meantime most shareholders remained loyal to the company under the most exigent circumstances when the price seemed to do nothing but go down. Some people like me invested large sums of money in this company years ago on the dividend expectation as I knew I would be reaching retirement age. To see now that the company is not providing what it promised when it clearly has that capability is shameful. I have no other way to put it. It seems SIAF is taking advantage of the fact that there are many new shareholders to whom that promise was never made directly, but I'd like to remind the company that there are many long-timers here still who remember what was said.

With all due respect, I think you are cheerleading when you conclude that the lateness of the dividend announcement means that there were forces pro and con a substantial dividend. This is exactly how myths are born, and we don't need that here. There has been enough of that already. There is uncertainty about the reason for the lateness of the PR, but it's not good to project into that vacuum an understanding that is favorable to our interests as fact. There are any number of reasons why it might have been late: 1) Solomon was traveling 2) Everyone forgot 3) No one particularly cares about observing timelines 4) EC was unavailable to consult 5) they were debating a 1% or 2% payout, etc. The history of this company is that over-believing is destructive to one's health.

I agree with you since I´m a long time owner. I´m dissapointed aswell. But my dissapointment is not focused in how things have been run the last 10 months. My dissapointment is focusing on the total lack of ability to know what needed to be in place historically that led to an uncontrolled dillution and a total pps crash. We are in a totally different situation now with new strategies and new competence onboard and for that I´m grateful, otherwise I would probably have sold now.
In the long term this has been an bad investment for me but since ECAB came into the picture its been a great investment. But I do share your frustration but only historically.

I´m not creating myths I´m merely stating whats likely and I think you are simplifying the complexity of the total strategy going forward in creating shareholder value. We are now working to be a focused aquaculturecompany.... a lot of things has changed in the last five yrs. If you read the PR it actually states that discussions with advisors took longer time than expected. Meaning thats the reason for the delay! What you are mentioning being possible reasons are speculations though since its not based nor is it a conclusion based on any facts at all..

When both you and me bought into this company there was no MF project, that came later than both Solomons promises of 8 percent dividend etc... Now we are in a situation where we have 65 percent ROI on the MF project. It takes less than 2 yrs to get invested money back! I think its good that we adjust to the ball. Do you still think they should try to give us 8 percent and at the same time try to raise capital for that same project?

You say 8 percent of EPS is nothing but, but 8 percent of earnings is not 8 percent of free cash flow and its a lot more if you look at the free cash flow from operations.... Its all about different perspectives I guess!

I also think we need a dividend as a sign of credibility but not because its the smart thing financially. I more look like it as a sign of credibility, a marketing expense, that we are for real etc...
I personally like strong dividends and a slower growth pace due to the fact it brings a great deal of credibility to our company that could mean higher valuations. Obviously we are not being valued today in accordance with our growth pace and our opportunities. We need to adress the reasons for that. But in that part I think we share opinions.

I dont believe in overpromising and underdelivering. If they would of gone the other way and been more agressive with their dividend, I´m sure even more shareholders would of complained due to the situation that we actually need to get a lot of additional financing.... how can we have a substantial part of the free cash flow handed out.... and at the same time raise money??

Investors have different outlook for their investments and I personally would like a high dividend and a slower growth pace.... but I understand it doesn´t comply with Solomons plans and with the promises he has made with local authorities etc. So for me its better to try to get active in the parts where the company really could improve, and thats in all areas that has something to do with the transformation of operational success into shareholder value. Its about getting the fundamentals in place so that we can attract the capital we need so we soon enough can get to the point where we can have that great dividend we all long for when the MF is growing their EPS by 2,5 dollars/year.
Lets help the company to get to that point. Lets be active about it. Let us show support for all the experts thats is in the SIAF organiazation so they can do all the things their CV´s tell us they are capable of. Let them take care of shareholdervalue and Solomon can run operations. Lets focus on getting there!

If this wasn´t a problem the PR would of been on time and thats not a myth its just a pretty simple conclusion based on the facts given to us.

[JMike]

There is uncertainty about the reason for the lateness of the PR, but it's not good to project into that vacuum an understanding that is favorable to our interests as fact. There are any number of reasons why it might have been late: 1) Solomon was traveling 2) Everyone forgot 3) No one particularly cares about observing timelines 4) EC was unavailable to consult 5) they were debating a 1% or 2% payout, etc.

Based on a reply I received from Peter in IR this afternoon, it would appear to be a matter of semantics regarding the meaning of the phrase or the words "by the end of 2Q."

They apparently believe they were correct, forthcoming and on schedule with the PR issued today. Or at least that is his story.

[snow]

sly

You are hardly alone. All the US pilots who own a large chunk of SIAF made their Investment for the dividends when they become pensioners did they not?