Replies to post #22007 on Sino Agro Food Inc (fka SIAF)

[treit2002]

Nowhere did the company ever disclose that all those shares would be sold into the market. All they ever said was that they settle debt with stock.

No, they disclosed what their capital development budgets were, and approximately what percent would come from equity. To Andrew's point of not expecting so many shares to be issued, most probably, the company did not either. It's a function of the share price.

Now, in my opinion, seeing the low share price, the company would have been better off limiting the capital expenditures. Perhaps they were indeed committed. But even if they weren't, the plans were out there.

I also agree that we will soon see more outstanding shares than we thought. One of the main reasons for this -- tho I'm speculating -- is that the HU yield was severely impacted by weather again this year.

The good news is that more shares issued equals fewer to be issued. We know that 2013 is the last year, if the plans aren't superceded by the bond offering. We also know the number of authorized shares.

What we could use is sufficient demand to eat up all the shares, and at higher prices.

I freely agree that the overhang has been more than the shares can withstand all of 2012. Perhaps this dynamic changes with a listing in Sweden in early 2013. It should, and it can only help.