Replies to post #120204 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

But he has a bunch of advisors to discuss this type of matters to

And let me just say, if they think a $20M share buyback program will get us to $20, they should all be FIRED.

Many companies have tried, and many have failed. If it was that easy then we wouldn't have cash rich companies trading below 10% of book. The reality is however, we have lots of them.

I know why Solomon prefers a $20M share buyback program. Because it means, he only has to spend less than $5M during the first year. But the market is not stupid. They will see through this. What makes it even worse, is that Solomon has no credibility to begin with.

So, there are only 2 options. Spend $15M on quarterly cash divdends and $5M on share buybacks, or, spend $20M on quarterly cash dividends. We need a dividend policy. We need to tell the shareholders exactly what to expect, quarter after quarter. If they do this properly, we will see a $7 share price before year end.

Baby steps, Solomon...

[Nakkikone]

Well, I wouldn't call it a big mistake. People tend to make hasty conclusions from few words. I appreciate your efforts as an activist investor.

Btw, if no-one noticed yet(?), Tri-way.hk is online again with a new layout. No new information, just copy-paste from SIAF site. Information should be rewrote, SIAF background left behind and more emphasis on current business idea. Yes, it's not ready, but why publish half-baked stuff already?

[RealDutch]

I think the best approach would be to announce a dividend policy where they spend $2.5M on dividends every quarter.

Subject to conditions and developments, they could then either increase the dividend, or add a share buyback program later.

Because the thing is, if the stock rallies to $10 for some reason, then they would want to do share buybacks. More cash dividends don't add value at that stage.

If they present a plan like this, the market will be impressed. But they have to start with the quarterly cash dividends. They can do it now, or soon. We don't even need a $20M package.

Then, review the situation 6 months from now. Either increase dividends, or add share buybacks.

[caffeinedrive]

There will always be sticklers but I for one was very happy to hear about that comment as you want to feel some passion about restoring the share price from the ceo. Most mature investors will take the comment not literally but for the sentiment it represents. Thanks again for sharing.

[Emilez]

He thinks that buybacks in combination with all the positive news that is around the corner

The Swede, do you care to alaborate a little about the positive news that are around the corner? Did he say anything more about it?