Replies to post #136920 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

You left out Garrett's convertible.

That is his responsibility. He knows how we (I) feel.

And this is what we =know= about so far, obviously there are the payables being covered in shares as well.

This is the same thing. The 5.2M shares issued to ECAB for $3.

[RealDutch]

They could fix it, buy back 10 million shares at 50 cents! It costs $5 million, but with $600 million in assets they can't come up with that kind of money.

No! That won't work. There are many restrictions because companies are not allowed to manipulate the stock. Which is what you are doing when buying 10M shares from the market. AND, the same insider rules apply. You can't repurchase stock unless all material info has been disclosed.

You can achieve the same effect, and better, by paying quarterly cash dividends. Completely legal.

[jyyoo]

They could fix it, buy back 10 million shares at 50 cents!

As you already know everything starts with the $100M Tri-way loan which is in "advanced stages" now. Once they close the loan, they can finally start to actually do the things they know will help shareholders: Put a cap on the outstanding share count, pay a cash dividend, pay off collateral shares to reduce share count, and buy back stock.

Shareholders have pushed heavily for a cash dividend and Solomon has actually finally listened. I am sure Garrett has had influence on this as well. The reason Solomon originally leaned towards buybacks is because he is angry with the share price as well. Obviously his management decisions have contributed to the decline but he still believes it is overdone because of short sellers. He was correct when he said short sellers were using the narrative of collateral shares being sold and topped off in a negative feedback loop and that it was untrue, yet no one believed him and it was stated so many times on this board that it became fact. It wasn't until the lawyers actually went through the collateral loan agreements and stated that collateral loans can't be sold or sold short, and weren't topped off since Q3 2017 that this talk and fear finally stopped. Notice how the narrative has changed though.

[snow]

"They could fix it, buy back 10 million shares at 50 cents!" This statement is out of this world. SIAF can only buy back shares at a low rate the way the rules are. If you buy millions of shares that will affect the pps dramatically.