Chinese organic food company Sino Agro Food (OTC: SIAF) continues its decline today as it dropped 2.6% to $0.375. The stock closed at $0.385 last night and opened at $0.39 this morning. After rising to $0.408 and dropping to $0.37, the stock closed at $0.375. The company’s stock reached its peak on April 2, 2012, when it reached $0.98. It held steady the next day before its sharp drop to $0.62. It then rose back up to $0.83. The price has fallen and risen numerous times since then, but has stayed mostly under the $0.60 mark. The stock rose to $0.51 on July 5, 2012 and then declined, experiencing declines every trading day since then.
Volume was still up, exceeding 817,000 shares. The average volume was just under 278,000 shares. Volume hit a 52-week high on December 12, 2011, when the number of shares traded exceeded 1.48 million. In December 20, 2011, the volume exceeded 1.14 million. Those were the only two days in the past year in which volume exceeded one million shares.
Sino Agro Food produces and distributes agricultural products and organic food throughout China. The company focuses on creating gourmet and high quality foods for middle class consumers. Types of products include beef, lamb, fish, fertilizer, cash crops and stock feed.
The company garnered a couple sales contracts earlier in the year. On February 29, 2012, Sino Agro Food announced that one of its subsidiary companies, Capital Award, received a servicing and consulting contract for a second prawn farm in China. Total revenues from this award were expected to reach $21 million.
On Mach 28, 2012, Sino Agro Food was awarded another contract. It announced that its subsidiary company, Macau Eiji Company, had been awarded a contract for aromatic beef sales. The contract was said to increase the company’s revenue by up to $18 million.
The company generated a lot of buzz on May 18, 2012, when it announced its revenue for first quarter 2012. Revenue was recorded at nearly $16 million, an increase of nearly 412% from first quarter 2011. Its gross profit exceeded $8 million, quadrupling its first quarter 2011 number of nearly $2 million.
The company has not generated any news since then. The company’s stock was promoted late last year and early this year when it made some huge gains. It also gained some buzz in late May when it experienced a surge in volume. The increase in volume came at the time when the company announced its earnings report. Will a surge be in Sino Agro Food’s future? Let’s see what happens in the stock market next week.
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