Replies to post #36191 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

Yes, biotech stocks seem to have the same growing pains

As you probably know, biotechs are always a bit of a gamble. Even when you are confident about previous trials, a drug can still fail.

SIAF has a sound business model. I don't see how it can fail, and the high margins reflect that because it reflects demand.

The value is really in expertise, know-how and applying the right technologies.

It's a dead cert winner, IMO. The problem is, it has been growing so fast, and the share price didn't follow. So they had to issue more stock than planned, which in turn increased the selling pressure etc. It's a pain in the butt. But yes, now would be a good time to purchase the stock ahead of the listing in Sweden.

[The Swede]

but if what I have been researching is correct it seems that the company is transitioning into a more diversified company with greater revenue streams?

Yes they are, since you have read the 10K, you have learned that they are moving to be fully vertically integrated business, and at this very moment they are just about to get there. It's very exiting imo who have followed this transition for a long time.

What you can't read in the 10K is that the company is planing to spin out one or more subsidiary a year from 2014 on a Asian list. What has been said is that half of the IPO cash will be payed out as an extra dividend to it's shareholder. It will be a great opportunity to ask questions regarding this on the conference call. It's not unlikely that the first spin out is delayed a year or so.

What you can't read either is that like 60% of the shares are in Swedish hands, which is quite unique for an OTC stock, and that is why they are dual listing in Sweden. And that is why you find so many on this board who do not have English as their mother tongue.