Replies to post #127773 on Sino Agro Food Inc (fka SIAF)

[ks1977]

and is considering to hire a table to increase the volume

Was that a typo? You lost me :-(

I agree with you; it's not the low volume that is the problem. Start delivering and the PPS will climb up on both high and low volume :-)

[jyyoo]

Solomon still says that all collateral shares must be returned when they repay the loan. Considering that the company has been topping up with collateral share, it's very unlikely that the loans are defaulted. They actually paid back 2,5 million on one loan not too long ago, but it was not enough to lower the collateral requirement.

So when they paid back $2.5 mil on that one loan not too long ago, they didn't get any shares back because it wasn't enough to lower the collateral requirement?

Now I will speculate some. I think it's possible that these 4 market makers don't know what the others are doing with their collateral shares. It is possible that they have been over comfortable bleeding (throwing) out collateral shares in to the float thinking that the float is much bigger than it is. With collateral shares on the market the float appears to be bigger than it is, so they might think it's easier to buy them back then it will be.

I personally think if they are selling collateral shares they are doing it based on some sort of set risk controls that they have. They aren't trying to speculate and trade the stock they are simply protecting their collateral. They may not even know they are the reason their collateral continues to decrease, or like you said that others are doing the same thing as well. So when it comes time to return shares, yes they may create a short squeeze of epic proportions but again, I don't think this is their first priority to worry about since they aren't traders. They simply sell when the value of their collateral goes down and will buy when its time to return the shares.