Replies to post #36184 on Sino Agro Food Inc (fka SIAF)

[weeblewobble09]

The company has diluted massively in recent years. From 50M outstanding shares to 112M. All of these shares get dumped onto the open market as quickly as possible. That's why it's so undervalued. The hope is that dilution will end soon, but it keeps coming. Not speculation, it's fact.

FN listing is what we're all here waiting for. The hope is that once on FN demand for the stock will increase exponentially.

Chad leaving is not a red flag.

[snow]

phils

I will just address one point. This company grows very fast and part of that growth is financed by selling shares to pay debts. Those who get those shares sell them almost once they are in a position to sell them. Tens of millions of shares have been forced on the market this way and this has forced the price per share down time and again. This is the dumping that has been the curse of this stock.

[RealDutch]

The company issues stock to Joint Venture partners for settlement of debt. This is to pay for the initial 25% ownership, start up costs like inventory purchases, potentially even for acquiring a 75% stake. Because the company doesn't have the money at this point to pay for all of that, including lots of new developments. Which will obviously be the case from 2014 onwards as the company is generating revenue/profits very fast.

The shares that end up in the hands of our JV partners (Chinese business men) will be sold into the open market. Because they don't want them. They want to see a return on their investment as soon as possible. That's where the "dumping" is coming from....

And this dumping has been going on for 2 years now, keeping the share price artificially low.

I call it the perfect investment while also pointing out that the CEO is a savage.

That is all you need to know. There is absolutely nothing wrong with this company except that the share price simply CANNOT go up with so much selling pressure. I believe (they better!) be working hard to resolve this issue.

[prokopton]

"...-if that is the case is that fear based on something tangible such as past experiences here or just a basic fear of not being able to trust some Chinese businesses."

Just "some" is right, as in Chinese RTOs (reverse mergers), which SIAF is. After the debacle in the last 3 years with Chinese RTOs, many U.S. investors won't come near them. However, most U.S. listed Chinese non-reverse mergers are doing extremely well.

Whether deserving or not, SIAF has been cast in with the bad apples. My opinion is that SIAF is dead money for a long time unless it makes it to the FN or gets off the U.S. OTC.