Can someone help me out here? I'm new to this board and I'm looking for guidance and explanations to my questions. In review of SIAF numbers, all look pretty good to me yet the stock price stays in the .040 per share range. Why is that? I would thnk with the quarterly growth they've recently experienced that the share price would be the $3.00 range or higher. Is there anyone out there who can provide a logical explanation for this? Thanks in advance.
simply google chinese micro cap fraud stocks. You will see why this is 40 cents on its way to 0. Do not get sucked in here. This is a spider's web for new investor types. You will lose all your money. All of it. Google chinese small cap stock delistings..
the fact is it is a crime that any of these little chinese fraud companies have been permitted to ever trade on an american exchange, which has caused the loss of hundred of millions of dollars to innocent u.s. citizens.
Fundaments (growth) are not reflected in the share price when considering Chinese small caps on OTC. For now. Obviously that will change one day.
In 2011 and 2012 the company issued stock to finance grow. They don't just issue stock, but they settle debt to joint venture partners. This gives them a lot of flexibility because, whenever they are low on cash, they simply issue stock. This way they can grow very fast with limited resources. The downside is, the stock dropped and dropped and dropped so it's getting more expensive to finance growth. IOW, dilution. And that's not even the main problem when you are growing as fast as SIAF is, but there were more and more shares hitting the market (because obviously not all the partners want to hold on to the stock - they want to see a return on their investment). Well, that didn't give the company a lot of credibility. Because nobody understands this stuff, really. These days you are considered a hero if you simply deactivate your brain and accuse the company of fraud instead. Still with me?
Anyway, that financing strategy wasn't sustainable. And the company has done a lot to change that, starting in Jan of 2013. What we have these days, I think, is hedge funds or short sellers still exploiting SIAF's weakness. If you have level2 you can see it because all ARCA ever does is sell, sell, sell. Actually I warned about this last year because we can't tell the difference between financing shares hitting the market and manipulators exploiting our weakness. But it is what it is.
I think we are very close to a turnaround though. I think the directors are fed up with this like the rest of us. And we will see massive insider buying after the company reports Q2 results. At least, we can hope. Personally, I'm counting on it. I do know that the trading window will most likely open 1 day after the company reports earnings because that's what Nils Sandberg on the BOD told us.