Replies to post #135452 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

We were supposed to be protected vs dilution. Instead we learn that - instead of giving the dividend - they diluted us with 20% at 10% of book...

Yes, that tends to happen when you trade at 10% of book or less. That's why it's important to keep the share price up to at least somewhat realistic levels. And why I have been asking for the cash dividends since June of last year.

But you are never protected against dilution. And it is hardly ever sufficient grounds for a lawsuit. You should see some of the crap that happens on OTC, it would make Solomon look like a Saint. But of course we expect a LOT more from Solomon, because this is a real company with real potential.

I cannot say this any other way. It benefits the shareholders by keeping up appearances (to some degree). Investors have a responsibility too. Caveat Emptor. Don't believe everything they tell you. But what they did in Q2 last year with the stock dividend is bordering on what is ethical/legal. I already said in May/June of last year that there is no way they are going to be able to pay the stock dividend by the end of June. Because the shares weren't even registered in HK at the time. And I busted their balls about it. So no, I am not happy about this either. I am not happy when I am right every time it concerns bad news. And I am
wrong every time when I'm hoping for some good news.

There is some good news however. It seems we will get the collateral shares back. So basically we are at 26M shares. Let's make it 30M.

That is sort of my point; disclose it after it is known in the 10-K, not immediately which is required.

That's a bit of a problem, isn't it? They want to tell us who they issued the shares to. But they can't do that until it is disclosed in the 10-K. So they decided to wait a few days.

Also, if they say the deal was done in July, they should have reported it back then according to the rules on Merkur IMO.

No. Because they hadn't been issued yet. Just agreed upon. They wanted to negotiate an all-cash settlement since then but obviously they never had the money. Otherwise they wouldn't have given them 5.2M shares (this year).