Replies to post #10235 on Sino Agro Food Inc (fka SIAF)

[emergingmarketinvestor]

Might already be happening

100,000 shares for sale at .63

Smells like dilution

[Emilez]

Why not slow down a little, reduce capex and dilution until enough cash flow is there to support further growth?

Remember they are talking about 66m capex from internal revenues vs. 56m projected income for 2012? That means 10m equity financing to me. That's a lot of extra shares that we shareholders have to worry about after the Ironridge deal. JMHO

I agree with you completely there viking86.. I think he said that 10% of capex may come from equity financing..

[Andrew26]

Trying to get 10M USD at a PE of under 1 after all those deals would be totally killing to the company. Noone on earth would do it unless the company would be a major fraud.

IronRidge deal was already just just on the line, one can understand that it was for the debt and it had to be paid. But you can postpone a bit of growth, especially if the growth pace is still very high.

And one last thing - the company states it makes 56M income in 2012 so 10M more or less is not that huge step back if they turn down the dilution.

There is just no way on earth to justify if they would do it, absolutely not. It would be a laugh to shareholders and just sucking away the money from them. If the company wants to get respect from the market, they have to start by themselves and treat the shareholders so they deserve higher valuation. If they just keep dumping every year in tens of millions of shares, why would anyone value them higher than piece of toilet paper. It would be the same way how the company would treat the shareholders...