Replies to post #16540 on Sino Agro Food Inc (fka SIAF)

[snow]

Traderfan

What is certain is that the shares will be worth less some day in the future because net assets will be reduced when the cash dividend is paid. What is uncertain is if shareholders are able to meet all the requirements to get the special cash dividend. All in all I would have preferred to do without this specical cash dividend since there is so much hassle and uncertainty involved. It looks as if the market thinks the same way based on the pps.

[treit2002]

More upside down world stuff, led by RD off the reservation again.

The company came up with an innovative dividend policy, as a shareholder friendly move well over a year ago. Half the dividend would be paid in a convertible note. This saved the company cash, yet still provided a very good dividend yield, quite uncommon for shares in this space. The other half of the dividend is cash.

The company had to jump through hoops to get a good legal way to honor their commitment; they found one, and implemented it. Now you get 6.8% of the value of current shares, increasing to 12% if you hold your shares another year.

How this is bad escapes me.

How do you think people would react if they announced they were scraping the plan and were halving the dividend?

[The Swede]

I personally think that all of this is not worth it. I for one will most likely sell the day before the record day since I don't hold enough shares either way to make it interesting to go through all the hassle because of a few bucks which I might get or not in 2 years.

Hehe, why bother sell if you so few shares at the moment that you only will get a few bucks in divi ;) most likely your broker will do all the paper work for you anyway. It's not like the police will be knocking on the door if you wouldn't send in the paper work if you hold those few shares over the record date ;)

It would be hilarious if the stock drops before the record date and rally the day after :) but it wouldn't suprice me in this upside down world we are living in at the moment ....hahaha