Replies to post #27726 on Sino Agro Food Inc (fka SIAF)

[IKEA]

For your knowledge I've emailed Mr Solomon now.
See if aget som reply.

This is getting scary, unfortunately!

[slyestjester]

Gee, Treit, that's really informative. Why did you ask me to respond when you did not consider anything I had to say? I see I was perfectly right when I initally suspected you had nothing in mind but to try to score rhetorical points, and I feel like a fool for having made the effort. Next time choose someone else to be your foil. It won't be me again.

[RealDutch]

The truth is somewhere in the middle. I can do the math but it won't be helpful. Let me get to the conclusion first. The issuances in 2012 at $0.65 are accretive and needed for growth.

First thing to remember is that the company would have to maintain a cash reserve of $5M to $10M if they didn't issue stock. Money they don't have, and money they need to invest. And that reserve would have to be bigger as the company grows bigger.

Secondly, there is hardly any growth if the company doesn't raise cash. Because there would be no money to ramp up all those farms and buy inventory. No money for restaurants, no money for retail.

That said, going forward, it doesn't make sense to issue stock at $0.50. It's a lot smarter to let the stock breathe..., slow down growth a bit, so you can accelerate 6 to 12 months later. So if Solomon can just adapt and get the word out about the new plan, so that we all know about it, that would be great.