Replies to post #60755 on Sino Agro Food Inc (fka SIAF)

[kavdiv98]

FT

Don't get me wrong. I am long and hopeful. The balance sheet is consolidated and A/R is a balance sheet line item.

Siaf's is following GAAP, but boasting about a $ 500 mil asset base when you have a consolidated balance sheet is not factually incorrect, but should be accompanied by a nod and a wink. Just pointing that out. Based on the percent ownership and back of envelope calc my estimate is that current 75-77% of the revenue is in the SIAF box. As investors, we need to put this in perspective. SIAF does not have a $500 mil income producing asset base. Part of that income from the asset base gets deducted (non-controlling interest income). When Solly feels the need to boast about the income producing asset base, he needs to calculate the percentage of the income attributed to the controlling interest and give us the number.

Who gives two hoots about an asset base - I have no idea. A cash generating asset base where the divvy is paid out from recurring operational cashflow, all of us care about. That has a bearing on valuation, as all of us know.

I am genuinely pissed about the lack of a buy back announcement, regardless of when the buy back or the means to carry one out might occur. To me a buy back announcement is an integral part of a sustainable divvy policy. Paying out material dividends on 150 mil o/s is not realistic. Solly needs to buy some shares back without showing his hand when the cash is available to buy back stock. I feel a material divvy on a Q over Q basis will make a difference and can only be done, if the outstanding shares is less than a $100 mil. 150 mil and climbing is not sustainable for a reasonable divvy policy.

I still stand by my earlier post about the A/R is not collectible, given our relationship with the farmers and JV partners. Fyi, when you look at the A/R, please include 'Other receivables' too.

I don't take myself too seriously and know that what is posted on these boards have any effect on the pps or affects trading. But, still good to post and know. I read all the posts, but trade based on my judgement, as the rest of you do.

kavdiv