Replies to post #151417 on Sino Agro Food Inc (fka SIAF)

[jyyoo]

I believe people will invest in SIAF not for the dividend yield but because it will signify 1) they finally care about shareholders 2) their cash flow is improving 3) their cash flow is real.

After they're convinced the earnings are actually real due to the cash dividend they'll invest for the earnings growth, whether it's due to beef prices bouncing back, MegaFarm expansion after closing financing, success with the new TRW trade division, Nortus getting financing for Angola project, etc. The cash dividend will simply create credibility to start valuing the stock like a normal, even OTC stock. A 5 P/E will do and get us way past $1. And as I mentioned before, the dilution is what was responsible for the real waterfall in the share price.

The important part is knowing that dilution is permanently gone. Having a semi-annual cash dividend in place will be a nice reminder to shareholders that the company has more than enough money to not dilute. I think Solomon is more than incentivized to announce the cash dividend dates ASAP, and the fact that he hasn't probably means we won't get it by year end (the market seems to be pricing this in as well). I've seen some companies with payouts for Dec. 31st and record dates as late as Dec. 22nd, but they already made the announcement of these dates last week whereas SIAF hasn't.

[jyyoo]

I don't know how you plan to try to trade this short term because the second they come out with dates it'll skyrocket (I assume you agree?), even if the payout date is much later than the record date say Feb. 31st for payout and record date Jan 15. Which is what I think they should do if they can't deliver this year which is looking unlikely at this point.

Medifast (MED) for example just announced a cash dividend with record date of Dec. 21st and pay date not until Feb 7th. Scholastic just announced one w/ payout date on Mar 15th and record date Jan 31st. As someone without a full position do you just pray it goes to $.10 and load up or what? Because I really don't think things will set up technically before an announcement. I think it'll just gap up one day when they PR the dates.

[RealDutch]

If they pay a 4c quarterly dividend then it's a $1 stock. They even have the money to do a special 10c dividend some time next year IMO.

Solomon has to do something like that. Or nobody will be able to help him or the company. It may sound strange but perhaps it's not Solomon who has to deliver. Perhaps it's Garrett. After all those negotiations.

Do the "minimum" 5c semi-annually and the stock will go absolutely nowhere. A lot of people will sell and the company will struggle for another year.

Solomon will fail IMO. Garrett will fail. These things never have a happy ending for the shareholders.