Replies to post #4902 on Sino Agro Food Inc (fka SIAF)

[Emilez]

They've devised innovative schemes to grow their businesses in highly leveraged ways. But, they are not capital free. For instance, looks like in many cases,the government will contribute to capital for the cattle business on a one to one basis. But SIAF still has to come up with cash.

Yes I've been thinking a bit about that.. I think SIAF owns 45% of the beef business. The project will likely get dragon head status as I understand it, with the government matching investments dollar by dollar.

However if only SIAF puts extra money into that business the invested money would double, but SIAF's share of the mony would be 45%*2=90% i.e. 1+% of the money would be lost. So even with dragon head status it might not be super attractive to put more money into the project unless the government does the same.

However if the reinvested returns on the money SIAF invests also are eligible for dragon head money it could be really good anyway.

[hyperboy262626]

Maybe we should send our dividend checks back to SIAF to help out?
BTW when is the next check coming?