Replies to post #134051 on Sino Agro Food Inc (fka SIAF)

[jyyoo]

I understand most of your points and think you had a great call on the 30's bottom. And yes I believe every short lived rally in the last 9 months have been short squeezes with FOMO (fear of missing out) investors chasing after the price as well only to see the price drop and become panicked sellers. As I said in the post I think there is a good chance we trade down from here since most of the "bids" are not new investors but simply desperate short covering with a mix of FOMO investors. So once they're done covering and people want to take profits they'll be selling into a weak bid again.

However, long term, (and any investor with significant capital or position has to be long term with a $20 Million market cap stock) I am bullish because of the reasons I've mentioned over and over again. I agree, most of the people cheering the stock on today will be questioning whether the company is a fraud or if we're in a "death spiral" again the second the stock has a couple down days again. As I said before, short sellers here just learned a valuable lesson (hopefully and probably not) and if they continue to short I will be happy to buy from them again but they are picking up pennies in front of a steam roller. Today was just rumblings of that steam roller. When it is here, everyone will know.

Agree back to the Masters!

[snow]

Traderfan I did not expect the following to come from you: "I know everybody is now super happy again because the stock is not at 30 but at 70 cents again." I am not super happy because the pps has more or less doubled. I continue to regard the pps as aburdly low. One reason why it is so low was fear that SIAF would continue to issue millions of collateral shares. That may have created a sinking feeling. Moreover, it is difficult to know where the bottom is in this type of situation. Therefore few take the risk to buy shares since there seems to be a good chance that they may be bought more cheaply later on.

In relation to the current market cap I think the statement by SIAF regarding the collateral shares was sufficiently positive to justify the increase in the pps and even a bigger increase. The implication seems to be that no more collateral shares will be issued and that most of those issued (those regarding the Shanghai business)will probably be returned in due course. This should remove the excessive worry regarding the collateral shares. I think the news at least justifies a pps of one dollar per share.

But I am not omniscient. It is common that the stock price falls back after such a sharp increase. It may do so once again.