Replies to post #5319 on Sino Agro Food Inc (fka SIAF)

[mauiguy2]

I definitely don't want to see a reverse split. Let SIAF become a NASDAQ listing the old fashioned way.......earn it.

The current somber investing mood for Chinese small cap stocks is not compatible for reverse splits for a quick fix (NASDAQ listing).

[Florinda]

"If the listing on the Nasdaq is in a few months, I think we may see a reverse split. Without the reverse split, I believe in a share price of at least $13"--Strindberg

Could you fill out your rationale here more fully please? Given how slow the Form 10 is going, and given how beat down China small caps are, the idea that the share price could reach $13 in just a few months (or even by the end of the year) seems extraordinary. But, as I've noted, I'm not a numbers guy, so I'm not generating forward looking figures. Nonetheless, I do think carefully about the rationales others put forth, and hence would very much appreciate hearing yours.

Also, I wasn't sure why you made your first sentence above a conditional one, that is, "If the listing ..." I wouldn't think the share price or a revers split would be conditional on them getting on the Nasdaq in a short period of time. I'm also not at all sure why you think a reverse split seems like a plausible thing to consider. Would doing this put management in a better position to issue more shares going forward, that is, for making acquisitions and the like?

Yahoo says there are 55.92 million shares out there, which I assume is at least within waving distance of the actual count. So a reverse split would bring the outstanding shares down to about 26M. That doesn't seem like a lot of shares, especially if management is holding a good portion of them. Tightening the float would presumably lend itself to increasing the price per share--above and beyond the automatic doubling from a reverse split. But I've heard that really big investors--e.g., hedge funds and brokerage firms--need to have, or prefer to have, a larger float for liquidity purposes. And if, as I would assume most longs would want, the aim of the Company is to make themselves attractive to large institutional buyers, then I wonder if the reverse split might work against this. Perhaps those more familiar with such things than I am could comment on this as well?

Anyway, thanks for the post.

Steve