Scoular bought a collection of worn out pipes, bins and cleaners from a company that lost $1 million a month of shareholders money since going public. Scoular made it's money for 108 years trading millions of bushels of corn and wheat etc for pennies a bushel and hedging those pennies on the grain exchanges. The cash specialty crop market will be harsh and they will use this purchase as an entrance to the regular grains that can be hedged. Just an opinion. AGT will blow up or be sold and cease to exist in less than 10 years. Again just an opinion.
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this should give CNCP something to think about!
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CN and CP have dozens of lobbiest in Ottawa. Always have always will. I highly doubt a US company will ever match that no matter how big they are.....again just an opinion. Time for a third railway company owned by the people it serves and not owned and run by US managers.
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Lund(hehe), why do you think AGT will crash and burn? Or do you think they will suffer the same fate as the the historic SWP with their "Project Whorizon" when they built their concrete tombstones and expanded into donuts and other ventures....?
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From the globe and mail. ......
"....A group of Manitoba’s First Nations plans to buy the Hudson Bay Railway and the Port of Churchill from Denver-based OmniTrax Canada for an undisclosed amount.
OmniTrax said on Friday that it has accepted a letter of intent from the group for the purchase of its assets in Manitoba, and will work with the purchasers for “a number of years†to ensure a smooth transition in ownership of the railway that runs between the port and The Pas......."
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Farma, AGT is operating in a very difficult environment that being cash specialty crops being sold in difficult regions of the world. Then on top of that dealing with an incredible unreliable inland transport network in Canada. Profits and stock price reflect that reality. They have done a lot to expand and move up the food chain and maybe that saves them. However the Co. is basically run by one man (backed with Turkey money) and eventually he will burn out. Hopefully before that there is other management in place to carry on and or they are sold to a larger enterprise that can carry the huge risk they are exposed to daily. I hope they don't go the way of SWP, but I would not plan to hold the stock long term and the analysis that cover it have really no idea past the numbers how tough that industry is.
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They have a lot of debt. New assets have to contribute to the bottom line.
I wonder if this purchase will do that if the focus is simply bulk shipping?
Am I reading the financials right? A good part of the purchase price was for Good Will?
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Many special crop marketers have come and gone over the last 35 years. This industry has been plagued by a very high rate of processing and marketing company turnover. I would say crop failure while you have pre-sold crop has been the greatest cause of sudden death, but foreign exchange risk and incredible transportation problems have taken their toll for sure because the industry depends on getting the right product to the right market on-time. I can't imagine the headaches involved in being captain of such a big ship as AGT. I wish the best to Murad and all special crop processors and marketers in the new year. Just to let you know many of the processors are working through Christmas so that the dots line up. For the 100 or more country processors who work in inclement weather so that we enjoy as close to true competition as we can get, we are eternally grateful.
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For sure Sumdum. Where would ag be without the pulse business.
Wheat never seems to fire on all cylinders.
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