Entered Sino Agro Food Inc (SIAF-ME)

Sino Agro Food is conglomerate of different food and agriculture related companies. The company is listed in the US (OTCMKTS:SIAF) and in Norway (SIAF-ME). The US share is trading at a slight discount to the Norwegian listing.

Chinese companies listed in Europe is a sorry bunch, ripe with frauds and dodgy accounting. Knowing this I still opened a small position in Sino Agro Food, mainly on a quantitative basis.

The share is trading at a large discount to net current assets, which is not uncommon for Chinese companies listed abroad (notable exceptions are HK and Singapore). Singo Agro Food has received some press coverage and management acknowledges the low share price and are planning various corporate actions to increase share holder value. This is a more risky pick, as the balance sheet is not as strong etc.

The company provides lots of IR material so there is information to dig into if someone is interested.

Entered at ~NCAV 0.4 (33 NOK).

Leave a Reply

Your email address will not be published. Required fields are marked *