Replies to post #53167 on Sino Agro Food Inc (fka SIAF)

[sopis]

But can you give an explanation why the company, or someone els, is selling so heavily in to a bull market with all good news coming?

[snow]

Chris


"Snow, this company probably would not even exist without the share dilution " I see no reason why you are right. Only a small part of the cash flow is provided by the dilution. The alternativwe would have been to abstain from certain activities or introducing them at a later state, for instance the wholesale business, the restaurent business or the export/import business. How much cashflow have those activities contributed so far?

Something may be a very long-term Investment even if the pps grows nicely from year to year. Microsoft would be a good case in point if you go back to the early 1080s.

[NewJerichoMan]

Bill, but the company growth (present value) far exceeds the sum of the dilution. Has this not been proven?

Just the opposite. Treit did a length analysis and was quite critical of the dilution. (And now he's the PR guy ;-) for SIAF.)

One of the arguments possibly justifying the dilution has been market share. The operating environment is China, an environment very good at infringing upon and working around patents. The idea may have been to grow the demonstration farms fast enough to illustrate their earning capacities before some would-be, well capitalized entity copied our tech and beat us to the punch.