What can I say! To say that I am excited for this evening’s Siaf presentation would be a severe understatement. Mr. Lee was most confident presentation of a full auditorium at Erik Penser in Stockholm, the same bank, who was a counselor at SEMAFO was listed on two stock exchanges in Stockholm. Mr. Lee told the audience that he plans to submit a proposal to the Board, to Siaf in 2014, when the company is, as he put it, ”cash rich” (as it will be 2014 according to plan), will go from paying 8 % paying 50% of profits after taxes and expenses of dividend to shareholders. He said that after 2013 there will be no need for cash injections or funding -. On the contrary, Siaf have plenty of money and time will have come for the shareholders to be rewarded for having invested in Siaf plan is also, starting from 2014 to start listing a subsidiary each year on ”a viable replacement.” Discuss with Mr. Lee and Mr. Tan after the presentation, I realized that Hong Kong will probably be the preferred stock to spin off its subsidiaries. ”And we can go on for 10 years,” said Lee. From 2012 Siaf will have 12 cost centers (subsidiaries). ”No one will sell their Siaf shares,” he chuckled. As for the future road map, said Lee that everything is prepared for a listing on Nasdaq and Amex. In June-July committee of independent directors will be in place and that the only thing Siaf need for a premium listing is a stock that meets the terms, $ 2 (for Amex) or $ 4 (Nasdaq) depending on the currency we are aiming at. I understand, the Nasdaq is the preferred marketplace for Siaf. When we reach the necessary stock price, the list can be done in 2-3 months (not weeks). The goal is to provide up-list this year, 2012. The next goal will be a dual listing in Stockholm and Mr. Lee expressed his hope that this can be done in Q1 2013th As soon as the main list in the U.S., a further Stockholm listing does not take more than two or three months, ”go on the fast track” to be prepared well in advance, as Mr Lee put it. There are some smaller clouds in the otherwise very light Siaf sky. The company will need to start paying taxes, probably from 2013. Mr. Lee said Siaf have to start paying taxes for every $ 25 of $ 100 earned. But Mr. Lee said he expected more of a total of 15-18% of the profits to be taxed on the average. Worst case scenario, according to Mr. Lee was 23% of the profit is taxable. Mr. Lee also commented on this year’s financial targets, is $ 0.68 fully diluted. And the number of shares at the end of 2012 will be 82 million according to plan. Q1 report is expected on or before May 15 The Siaf business becomes less and less seasonal, as the HU-flower business becomes a smaller part of total activity. This means that Siaf business become more consistent on a monthly basis. Mr. Lee also said he predicts the higher prices, which Siaf are few at present, beef and fish will keep for at least three years for the fish and at least five more years for beef. When I asked Mr. Tan, director of fishing activity, how many more years Siaf able to grow by 100% over the previous year, he replied ”at least 3-5 years.” We talked about how many new fish farms, we could expect next year, compared to the four houses have already been announced this year. Mr. Tan said he believed that a growth of 150% was probably a realistic figure. In my book, that would be another six yards. But I must admit that the whole time I talked to these guys, I got the feeling that they are rather cautious in everything they say. It was very clear that Mr. Lee is very focused on creating shareholder value and that the shareholders really is his main goal in everything he does. Mr. Tan also mentioned that Siaf now receives $ 33/kg sleepy cod. Wholesalers add app. 30% at this price so that the consumer pays about $ 43/kg for Siaf fish. Mr. Tan said that about 1% of the Chinese population is rich. But hey, it’s about 15 Mil. people, 15 mil. Rich people who are willing to pay higher prices for Siaf’s fish and meat and shrimp. talking about the meat, said Mr Tan us to the next step will be to initiate the process to obtain the production of beef halal certified. Siaf plans to start exporting beef to the Middle East market where there are many wealthy consumers are willing to pay higher prices for Siaf’s halal meat. Mr. Lee said in his speech that the plan is to sell about 5,000 cattle this year. Over all it was a very encouraging evening. I dare not guess where the stock price will be in the 2014th The only thing I can say is that I regret is already fully invested in Siaf. BUY the long term is not sufficient. I say ULTRA strong buy. Over and out from Stockholm.
Here – if you have not already read it – abstract from yesterday
presentation of Erik Penser, As you can see an abstract one rarely sees.
Similar comments came from the other
centers / management company / analyst groups / Shareholders’ Association we have had presentations.
Reasonably, it looks like (timetables are always impossibly difficult) if this
possible ”golden egg” will soon be able to hatch out a ’golden chicken’