Replies to post #152551 on Sino Agro Food Inc (fka SIAF)

[surfer44]

Ok, difficult. I will explain.
If you buy a share for 10c, you can lose 10c. Not more.
If you buy a share for 10c, you can make money. How much?
In SIAF probably a lot!

I understand it.

A) For someone with no shares, 10c would be a call option.

B) For the value investor who typically averages down. (Let's say 2 buys at $1000).

First Buy: 100 shares for $10/shr = $1,000 cost

Second Buy: 10,000 shares for $.10/shr = $1,000 cost

Total shares 10,100 at a cost of $2,000. Cost per share $.198

Note: If things go bad than the stock become a NOL which some people consider an asset.

An interesting speculation indeed.

[emptyone]

Here's the problem with your argument Handl. I judge my companies by the individual that run them. See it is all about the ability and past successes of these individuals as much as the concept and the potential. Without an individual with proven ability to execute there is no potential. Unfortunately having been here for over five years and witnessed the mess Solomon has created and the value destruction I can firmly say he has no abilities to be a CEO. He had a great concept. The concept had great potential but he can't execute either because he doesn't know how or because he won't listen to others. So for me unless we hire a pro and he hands over the key, I'm a net seller not a buyer.