Not so fast viking. You QUANTS must stop pumping out more data and PAUSE for a moment. If you had read my text more clearly the reason why knowing when dilution is too much or just right is that it involves a mix of qualitative and quantitative judgments. If building fish farms is the most immediately profitable biz endeavor siaf engages in, would you have them do nothing but that? Clearly not as when the string of building was up siaf would be left with nothing but cash on its balance sheet and no ongoing business. There is a need to establish assets that give reoccurring revenue. But that only comes at the cost of dilution since building fish farms is more immediately profitable than harvesting the fish of which there aren't many at the beginning!!
Is the dilution that comes from issuing shares different than the dilution that comes from deciding to to build farms for your own acct. rather than for others? Not really. The issuance of shares creates PERMANENTLY more shares but it also creates PERMANENTLY more capital; and while the share count is fixed, capital is constantly growing over time (capital begets capital). Hence call that a decision in favor of capital as long as it can continue to generate above average results.
As you know I have argued stridently that if SIAF can show earnings accretion from dilution in the second year, that is a reasonable compromise between the long and the short terms. My hesitation to do so reflects no fear of how the numbers will turn out but just that I have done so before for this audience, and I do hate REPETITION. If someone is interested, let them do it themselves! But let's look ay 2012 in rough figures.
SIAF started out the year with 152 mil in assets of which 73 mil were either land or loans, which leaves a balance of around 80 mil. On that let's say they make 65 mil this year (39 mil recorded thru 9 mod). That would make roughly an 80% return on non-land, non-loan assets. Given that return they could dilute more than 40% in a year, if the did it at a price that reflected expected earnings, and in the second year the transaction would still be accretive. So this year eps will be higher than it would otherwise be had Solomon not diluted last year plus SIAF will have in its possession one or more long-lived, ever-producing assets that it would not have otherwise possessed. I think that for you to suggest that someone of the caliber of Solomon with his background in accounting does not have an awareness of these kinds of basics is highly naive.
Market Data 
Markets 
AI
