Replies to post #120168 on Sino Agro Food Inc (fka SIAF)

[ks1977]

Ahvena; I haven't bothered to pay attention to how much companies spend on buybacks and when they are successful and not, but at 1.4$ a share the 20$ means 14 million shares, i.e half the outstanding shares! Surely, this MUST have an effect?

Maybe the initial effect will be for the PPS to increase, and then it may decrease if the market is upset with the number of shares bought. However, if SIAF sets it's mind on supporting the PPS at say 2$ and will buy back every single share they can if the PPS is below 2$, then that should have an effect?

They still might have difficulties since they can't buy more than 25% (?) of the daily volume, but with 20MUSD they could put out an offer to buy every single share at 2$. They wouldn't have cash to buy more than 10 million of the 27 million shares (including collateral shares), but there is no way that 10 million shares WILL be sold to SIAF (pretty sure that D'Alessandro would not sell his 2 million, neither Solomon himself etc).

What we need SHORT term is ANY support for the PPS. When that is established, then they can do other things to improve the PPS.

[modes948]

You really doubt that if they indeed spend $20M over the next year we would be close to $20?
Imagine for example that FD gives a loan to the company and also takes a seat on the BOD to oversee the buyback program!
There may even be a small chance that this is what happened after Solomon’s visit to Scandinavia.FD told him that there is money but only if most of it goes to buyback shares.And that is why Solomon all of a sudden talked to Swede about it.
But anyway I wouldn’t mind if the $20M takes us only to $5/share but with only 14M O/S remaining.