Replies to post #147976 on Sino Agro Food Inc (fka SIAF)

[ks1977]

It always worries me when a company tries to predict the earnings for the next quarter or so

Then you should be happy being a shareholder in SIAF, because they "never" give guidance ;-)

However, I don't think the expected to be cash-flow positive mid/late Q4 is based on estimated earnings, but when the AR is due. TRWs "fresh" AR seems to be due in Q4, and SIAF knows with 100% certainty the exact date for when SIAFs (well, CAs) AR from TRW is due. It should also be fairly easy for TRW to estimate its cash-flow (with some margin of error of course), and to plan its capex so that it can pay the AR on time. With a normal company this should be a no-brainer, but Solomon&co has a lot to prove before we can start trusting them with even such no-brainers.

They can always find a way to dilute if they want to, so I won't get my hopes up about that

Of course, but they did declare a cash-dividend policy and also stated that they estimate to be cash-flow positive mid/late Q4. I'm not going to say that it is impossible for them to dilute further (this is SIAF...), but they will have some heavy explanation to do (as well as potential lawsuits for pumping the PPS)