Replies to post #6340 on Sino Agro Food Inc (fka SIAF)

[slyestjester]

I think you have it just right, Treit. What they are creating is not a widget but a structure, which has infinitely more value, and is what Buffet, for example, would characterize as a great business that you never want to sell regardless of the prevailing circumstances. With an increasing dividend, that will be even more true. Assuming this develops as planned, it's not at all difficult to imagine this kind of reliable, food business selling for 20x.

I would guess that a lot of the JV partners will also become retail franchisees. And I suspect the partners have deep pockets and could purchase dozens of retail franchises. So one of my early concerns that they might have difficulty finding franchisees has been dissipated.