Replies to post #135579 on Sino Agro Food Inc (fka SIAF)

[emptyone]

GRDTRI and that has been the issue, I know you have more faith in Solomon than I, we agree that he is an excellent entrepreneur but there is nothing wrong to admit that you don't have the competencies to be a good CEO. In fact entrepreneurs seldom make good CEOs. They need to bring in some great professionals to run this company and also Triway. Solomon needs to bury his pride for the sake of the shareholders he says he wants to help,

[Mark-J]

There's no EPS. No cash flow. Tony is hobby farming waiting for a loan they will not get, they have no cash, just bad loans. Their assets and business is fabricated joint venture worthless stuff producing nothing for the shareholders. That's why it's trading at 0,something % of the "book value".
There's no mystery or under valuation. The market understands what's going on. There will be no recovery, show is over.
Some people still want to believe in fantasies but real world is what it is and it's proven already a thousand times that nothing will come out of this.

[ks1977]

I believe having a 10% yield and perhaps a higher payout rate would keep shareholders committed to buying

Indeed. The potential in SIAF is incredible (not only TRW, but also CA if we get that starting, and there might be some nice snacks elsewhere as well). I've stated many months ago that I don't think any* shareholders would mind too much about some delays if we have a 10% yield while waiting.

* Well, a 10% yield compared to the current PPS might not be satisfying for people who have bought at say $6-8, but once we get the PPS stabilized a bit higher then maybe both new shareholders as well as old ones will be content with the yield (i.e if the PPS is at $4 and SIAF gives a cash dividend of $0.4/year I guess that will give at least 5% yield of the average purchase price for most shareholders)

[MaterialMind]

The eps should drive the dividend. And using a payout rate of say 33% of eps would be good over the long term. However, for the time period of the next 1-2 years I believe having a 10% yield and perhaps a higher payout rate would keep shareholders committed to buying.

Garrett, if you can get us this, you'll be our hero.
You previously mentioned that institutional buying is the only thing that you think can get the PPS to exceed 100% of book value. What do you think SIAF has to achieve in order to receive the interest of institutions?

[soroi]

when you say 10% yield, do think we should start with some floor price that we seek? Four cents a year seems rather low.

[snow]

GRDTRI I fully agree that the dividend policy should differentiate between the short/medium term and the long term. Short term a goal could be to get the pps back to 2 dollars assuming a 10% dividend yield.

[Black_knight]

I believe that a dividend based on the EPS and paid with two quarters of delay (to be able to pay them with real cash and not receivables), would be the best option.

Even so, any cash dividend is doomed to fail as long as the massive dilution continues.

The shareholders will not be interested in receiving 10% of the capital invested while 50% of the shares are issued in the same year.

I think someone put a link on a new Solomon business to produce methane.
The saying "You can not teach an old dog, new tricks", applies very well to this case.