Lang and Oleary on glencore

[wd9]

http://www.realagriculture.com/2012/03/lan
g-and-oleary-discuss-glencore-buying-
viterra/

[grefer]

Kevin Oleary drives me nuts.On one hand he says what Brad Wall is doing is terrible and in the next breath the chinese govt is right on track.Maybe he isn't the capitalist he thinks he is.

[bucket]

What drives me nuts is viterra was working at becoming a one stop place in ag. I could deliver grain, maybe there was a new auger there that I need. While I was dumping grain I could start a conversation about the auger or a bin or two or getting fuel delivered or a good time to buy fertilizer.

Its all messed up now and I don't see any of the new guys offering up those synergies.

I could phone another Viterra location for liquid and not have to worry about another credit app. Now those two locations are not the same company, so someone is losing my business.

[wd9]

what oleary is missing is he is in it
for the quick buck. He can bankrupt a
few industries along the way with no
detriment to his daily life. There must
be stability in big industries like
commodities because there is so little
profit most of the way along.

We can't have 2000 a tonne fert one year
then walk up to closed crop input
companies the next year because oleary
extracted a huge 'profit' from the
industry that year.

We also need the free market to keep
prices real too. Quite the balancing
game.

[wilagro]

Kevin O'Leary is an idiot. I refuse to watch or listen to him anymore.

The whole show is "scripted" and a lot of the BS on there is exaggerated for effect. O'Leary is like a throw-back from the 19th century and would have fit in well with some of the old style monopolistic family trusts which controlled the USA and Canada at that time. He hates labour and labour unions and adores self-made entrepreneurs as they are his gods.

I hope all of his stocks become "penny stocks" and he has to beg on the streets for sustenance.

[wilagro]

This is a better URL and is not broken.

http://www.realagriculture.com/2012/03/lang-and-oleary-discuss-glencore-buying-viterra/

[dave4441]

Viterra was really becoming what SWP was. THey were trying to be everything to everybody. They were doing things that did not make business sense. But, in the end, the reason was that they were trying to appeal to as many suitors as possible. On the trade side somethings just did not add up either. Glencore will focus on handling large volumnes. In a deregulated world, we need focus from the grain companies. This will keep costs as low as possible. This is a highly competitive environment on the handle side. Market price will be market price. Works for canola.

Regarding the entire merger overall, i am somewhat shocked at the negativity of it. Mayo took a company, that farmers literally drove into the ground, and turned it into a 6 billion dollar asset. Wow. THe thing was bankrupt people. How can anyone really question what happens to those assets. How can a deal, which actually evens out the competition be bad? If Viterra bought out JRI it would be a bad thing, but this deal actually broadens the competition. Do we just want to complain about something and no longer have the board to complain about?

[bobofthenorth]

Thank you Dave for that dose of reality. Its pretty easy to forget how bad SWP was when Mayo took over. The company was worth less than nothing and now look at it. I didn't agree with a lot of the things Mayo did but he made it work. And I agree that the competitive scene will be a lot more balanced with JRI and Glencore more or less evenly balanced. I'm less sanguine about the impact of Agrium buying up the Viterra retail chain.

[dave4441]

YEah, i agree with you on that. Competition will come from new sources i hope.

[bucket]

SWP was worth nothing, really. Mayo didn't build any elevators and now ten years later they are worth something. Maybe the fact agriculture was in the shitter had something to do with why swp was in hard times, so were most farmers.

Some have to keep perspective to the times.

Besides if he was building the company as you describe from bankruptcy, why sell out? why not keep returning value to the shareholders well into the future?

Something still stinks about this deal and Mayo's hero portrayal.

[BTO_farmall]

Oh give me a ****ing Break Dave. All Sask Whit Pule, Agrisnore, Viagara knew how to do was Borrow Money, Borrow Money, Borrow Money, Thats all Theys were good at is BORROW MONEY. A $10 Million Dollar Conrete Elevator today, Once Bankrupt, Is still a $10 Million Dollar Elevator Tomorrow, So don't give me that Bullshit Dumb Minnow Mayo turned it into a $6 Billion Dollar Asset. Anyone coulda done the same thing, Seein as ALL they did was BORROW MONEY!!!!!!!!!!!!!

[bucket]

Actually BTO they borrowed the farmers equity to build the elevators and never paid the farmers back.

This deal with glencore smells.

And about the canadian richardson family getting involved makes it all better, well, if you don't like the cargill family, why do you think they would be any different?

[bucket]

CWB monopoly gone. Agrium monopoly created. The feds certainly are talking out of both sides of their mouths.

I didn't like the cwb and I am pretty sure I will learn to dislike agrium's monopoly.