Is it time to sell Agrium shares?

[rockpile]

Rhoff, I have pretty intimate knowledge of Agrium's
operations through a friend who is in management
and any insinuation that the retail side isn't making
money is hogwash. And they are going to change
how they report costs and revenues in production,
asset management, wholesale and retail. Jana is
looking to make a quick buck for 'their'
shareholders by liquidating the meat and potatoes
out of Agrium and then leaving town.
Wil, I don't think you can blame Mayo for what
happened to the Pools. There was a BOD who
governed and had ultimate say in these matters.
Personally, I blame the member/owners who sat on
their asses and without foresight asked 'what's in it
for me, right now, never mine the future'. Just how I
see it.

[rhoff]

Nobody is disputing whether the retail side is
profitable. But turning a profit isn't the only
objective,money managers also care about a
decent return on equity which is hard to
accomplish if you over pay for retailer. A money
manager who is one of the largest shareholders of
Agrium is'nt going to take your friends word for it.
That's the source of the debate -they want to see
how each business performs on a stand alone
basis through proper transperancy,which makes
perfect sense to me. When Bill Ackman showed
up at CP he wanted two board seats and a review
of the companies strategy,they replied with "get
lost". Well he ended up a lot more board seats
and the CEO sent packing because they were too
proud to listen.
If Agriums retail arm is as good as they say it is
then they can own shares of both companies.

[ColevilleH2S]

If the largest shareholder doesn't get a
say on who sits on the board, there is
something rotten with the institution.
They are forgetting that ownership
should always have the final word.

[rockpile]

rhoff, I wouldn't compare CP with Agrium. CP is an
old established empire who always shunned
innovation and new technology. Agrium is a recent
arrival and has managed a growth and success
strategy that is quite remarkable. I don't see 6%
ownership as a 'big wow' by Jana that should give
them any kind of special treatment. I see them as
carpetbaggers looking for a quick buck. They don't
create or make wealth from anything, much like
Bain Capital. Final question, if Agrium was forced to
sell their retail division, would it cause more or less
competition for the farming community? Who is in a
position to buy them out? And who would be
interested? And why?

[rhoff]

Rockpile
Your description of CP is probably quite accurate.
My point in comparing them is that Ackman was
also a nobody and they shunned him,he then
completely dismantled the board with 16%
ownership. 6% doesn't sound like much but it only
takes one more shareholder of similar size to
agree with him to cause real change. As far as the
argument that they don't create wealth-that's the
job of management on behalf of the
board/shareholders if the shareholder doesn't
believe managements strategy creates wealth
then he should move along or remove board
members.As far as your question of potential
suitors I thInk the breakup would look a lot like
Encana/Cenovas where shareholders are given a
share of the new listed company and can decide
whether to hold or sell. I assume many would hold
and there might be an appetite in the investment
community for a ag-retailer. So they don't have to
find a new buyer especially if they spin it off
gradually like Wendys did with Tim Hortons. I
assume if money managers saw a retailer with a
poor ROE they would conclude the underlying
assets to be overvalued and sell there shares in
the new company.

[sumdumguy]

Wilagro, you lament about old times and the
Wheat Pool with the CWB in its pocket. That was
easy pickings. Access to farmers grain like it was
your own, and government backing you. What
fun that was for Pools. Not so good for farmers.
Just saying!

[wilagro]

sumdumguy: Be happy...now you have a "World Trader" in your pocket with NO Canadian control whatsoever. Take it or leave it.

Baahh!!...you guys got what you bloody well deserved...you got bamboozled and it was so EASY.

[Burbert]

Mayo is like a bad cold, and is
certainly an aggravation to Comedian
framers. Cashing in, selling out
Comedian interests at a record pace.
Personally, I hate mayo, in that its
greasy, slimey, pale and puke white,
butt is a good lube. Guess thats what
it takes take get things done in
Comedian angribusiness! Who cares what
happens ta aquarium, its a private
company and wes kin huff and puff all we
wanta and in the end they do what they
wannna anyways..........