Replies to post #147595 on Sino Agro Food Inc (fka SIAF)

[ks1977]

a lower shareprice is preferable since it discourages dilution and management has to look for other ways for funding

Ah, now I see your point. Yes, if a low PPS discourages dilution then I would agree. Also, however painful it was to watch the PPS plummet in 2017 it wasn't that bad before dilution because the damage wasn't permanent (it just meant that I could have bought a lot more shares if I had waited), but with dilution the damage is permanent and hence a lot more painful (and unacceptable).

However, it seems that Solomon is willing (or forced) to dilute at any price; if he was willing to (or forced to) dilute at 5% of book in 2017, then he surely will be willing to dilute at 1% of book in 2018 if he needs to... Hence I don't think the premise holds with regards to SIAF :-( Our management is unable and/or incompetent with regards to finances.

It would be interesting to be inside Solomons head; was there no alternatives to the dilution or is he a total maniac? Has he sacrificed us to give TRW a boost? Were there some clauses in the carve-out deal that we are unaware of that forces his hand? Is he planning on a buyback-plan to compensate for some of the dilution? Etc etc