Replies to post #20023 on Sino Agro Food Inc (fka SIAF)

[viking86]

Treit and RD:

Let's get back to reality guys. As a small reminder:

Currently eps is growing at 200% , P/E < 2 lol.

As a way to put this nonsensical discussion about PEG and whether it applies to SIAF or not, let me ask you both this question that may interest the rest of us mortals much more. WE know that by this time next year this stock will very probably be listed on a swedish exchange with an eps of $1-$1.10 by EFY 2013. What do you guys honestly think the P/E will be by May 2014:

a: <4

b: 4 to 8

c: 8 to 12

d: >12

Note: My vote is b.

[RealDutch]

But you cannot name one BB company that it applies to, nor one cash flow negative company, let alone both. Yes, it's a metric, but just one of a hundred.

I don't get your point. PEG ratio applies to all OTC stocks, as does P/E ratio. The only difference between P/E and PEG is whether you include future growth rate.

If your only point is, that a Chinese small cap on OTC will not be fairly valued by the market due to certain concerns then we already know this. But then what's your definition of "true value" ?

You want one BB example?
HINKY. PEG ratio = 0.83
It's actually on the pink sheets.

I am willing to apply a 50% discount for SIAF when determining true value for SIAF. I've already mentioned this. Not because it is OTC or Chinese. But because they're unexperienced to some degree, when looking at accounting etc. Because there are cultural differences that can be exploited by the shorts, especially if they uplist to Nasdaq. Not because PEG ratio does not "apply". It most certainly does IMO. Because it applies to all stocks.