Replies to post #44460 on Sino Agro Food Inc (fka SIAF)

[RealDutch]

You are talking about S-1 and S-3 filings but you dont understand that the SWEDISH MARKET would never accept continous dilution, please show me another listed company in sweden who behaves like this...

The Swedish market like the Dutch market has mostly companies that don't need to raise capital. And if they do, they may qualify for bank loans. Chinese companies are different in the sense that they came to the US to raise capital in the first place. These are growth companies mostly, or start-ups. ANY start-up or growth company that needs cash will issue stock. There is no secret or mystery about this.

What the company is allowed to do and what the market will accept are two completely different things.

The initial theory posted on this board was that dilution is holding back the FN listing. I simply don't agree with that.
If that were the case, then Solomon would have moved heaven and earth to avoid the latest round of 5M shares issued.

I am not saying that SIAF cant dilute I am saying that the MARKET will never accept such a behaviour since it unheard of and certainly not shareholder friendly.

That's you, looking for reasons, trying to explain SIAF's undervaluation. But it's not that simple. The reality is, as Chad Sykes pointed out before, that SIAF was diluting back in 2008 when the stock rose from 0.01 to 1.00 or 10,000% in a matter of months.

The main problem here is dumpage. Because every buyer knows he can get the stock cheaply. The stock cannot rise in such an environment. And there is too much dumpage (stock being issued) in relation to average daily volume.

[stolpen]

Great post Martin I've been trying to tell them about the same for better part of the latest year but to no avail so that will probably be outcome this time as well but a very well formulated explanation with only valid points, cudos :)
Redards.

[The Swede]

Good post Martin, I can only agree on every single point you make.

Can you imagine the first time someone tries to explain "sale of unregistered shares" in a public traded company for a Swedish journalist?! I don't think that that many of the current Swedish SIAF shareholders know that SIAF is selling them, and even less understand how that works, and those who understand, probably still don't understand how it can be allowed. I'm one of the later ones...