Replies to post #145279 on Sino Agro Food Inc (fka SIAF)

[zerohedge]

they'd have to pay dan in "cash" but alas.... they only have SHARES and no cash..... it's a fraud....

they pay for everything in shares -

you must remember and UNDERSTAND how markets work.

if I buy $100,000,000 of assets

then I have 100 shareholders @ $1MM each - value

if I am CEO and (using my unlimited vote) I sell another 100 shares for $50K each....

now my EXISTING shareholders have -50% of the equity they had before.

this is VERY VERY VERY BAD

WHY DID I SELL THESE SHARES AT A HUGE DISCOUNT? BECAUSE THE ASSETS I BOUGHT HAD A FAKE VALUE TO BEGIN WITH!!!!!

these people and their promoters are career criminals.

if they had any cash - say $200K they owed to the CFO for salary - why would they pay him with shares (book value equal to 200,000 X $15USD = THREE MILLION DOLLARS OF BOOK VALUE vs the puny $200K owed in salary.)

that's a fraud on the shareholders.