Replies to post #4853 on Sino Agro Food Inc (fka SIAF)

[johngalt_as]

Hyperboy, I remember reading that cap-ex line before. Would you mind linking the source? I'll let you know what my updated BV comes out to be.

Cheers

[Florinda]

Hyperboy,

Good questions, although I'm not sure how you would accurately come up with their current book value. Investopedia gives three definitions for "book value" and I assume you are referring to this one:

"The net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities."

Hopefully others more adept in these matters--johngalt, snow, thebear37, treit, etc--will venture an estimate. The HU flowers, for instance, are reaching maturity and therefore presumably enhance the BV, but then they'll be harvested. Does the BV go down after a harvest since it will take another full season to replenish that worth? Or is it simply calculated on the number of acres planted regardless of where they are at in terms of maturity and harvest cycle? Don't know. Similar questions arise (for me) with the fish farm(s).

As for the asset growth of the other segments of the business I'm not sure where you'd look to calculate it save culling out the snippets of pertinent info from the press releases for this quarter. At any event, this is something I need to defer to more experienced investors.

I do think your statement that the "PRC is matching SIAF's CAPEX"
needs to be tempered since this fabulous development is, to my knowledge, only been granted to one segment of SIAF's business. As for figures, it would seem one would have to go with what was stated in the press release that announced this boon. It says there:

"To date, the HuangYuan government has provided grants totaling RMB 900,000 as well as provided infrastructure support and construction valued at approximately RMB 1,500,000 for the SanJiang, HuangYuan joint venture project."

http://finance.yahoo.com/news/Sino-Agro-Food-Inc-Receives-bw-1135831855.html?x=0&.v=1

Back to book value, would the infrastructure improvements noted above increase SIAF's BV? Are such things really SIAF's assests? I don't know. Obviously, the improvements will help SIAF, but that is not necessarily the same thing as being the company's net assets.

At any event, like Snow, I'm not aware of a better sounding investment than SIAF, but getting a more fine-tuned assessment of the BV would help indicate to what extent this is apt to be true.

Steve