agricore united share selling

[Ron]

I just received my share selling package and I am wondering anybody thinks. They estimate the shares might be worth 12.27 per share. How does this compare with the past value of ugg? If I keep the shares do they pay dividends (or some other annual return)? Can I sell the shares at a later date? I am thinking this might be an opportunity to get my money out of agricore and put it somewhere I can get a better return (either priciple on land loan, buy stocks, take my wife on our long delayed honeymoon). Any input or smartass comments will be appreciated and enjoyed.

[Ron]

ps
What about buying shares in cargill or SWP? Who do you think will be the final player with our grain? (I am actually thinking of going through the tse and buying anything with a french sounding name, bombardier seems to be doing pretty good over the last couple of decades).

[jmillang]

You may have trouble buying Cargil shares as they are still a privately held company, but SWP and others are fair game. I wonder if buy United Agricore is not a bad short term decision? I read in a press story here the other day that ADM wants to increase their share of action. Now is ADM wnating in to keep their foot in the door (not being diluted by the merger) or do they really see an investment opportunity.

I've been doing some reading and companies invest or buy others for a multitude or reasons, sometimes its for profits, sometime to block out other competitors, sometimes its ego. Often its the last one that make bad investment decisions.

I have no idea it the $12 is reasonable or not but worth keeping an eye on since ADM wants to. here is the [URL="http://www.globeinvestor.com/servlet/GIS.Servlets.WireFeedRedirect?cf=GlobeInvestor/config&vg=BigAdVariableGenerator&date=20011108&arc hive=roc&slug=2001-11-08T191235Z_01_N08351100_RTRIDST_0_BUSINESS-FOOD-CANADA-ADM-COL"]article from the globe and mail website[/URL].

[marcelvd]

No one knows what the value of the shares will be if you offer them for sale through the assisted-sale plan. It depends what the market is doing at the time and the balance between supply and demand for the shares. There may be a large number of shares being offered for sale by Agricore members wanting to cash in their equity. If there isn't sufficient demand to offset the supply, the price will drop. I've been tracking the share price over the past month or two, and it is currently in the $11 range (after peaking above $12).

The other problem with the assisted-sale plan is that you have to sell all or none of your shares. If you want to have more control over the selling price (and quantity) of your shares, you can also sell through a broker.

Regarding who will be around in the future... another good question. Looking at the top 100 agri-businesses in Canada, Agricore United should make the top 3 (with McCains and the CWB), and will be the largest grain handler in Canada.

[wilagro]

I phoned my neighbours on this one. All but one said SELL. I faxed in my SELL form immediately. Since Agricore chose to go the Agro-United route, I have no confidence in them whatsoever. We have lost our co-operative and joined forces with ADM which gives the Americans even more control of our marketing. To hell with the whole lot. I will never sell another bushel of grain to this consortium.

[winston]

I can't believe they are doing their customer/shareholders a "favour" by agreeing to sell their shares for them at $8.00 per share.The people who wanted to cash in their equity this way are only going to get 2/3 of the value of their equity back!

[bshaw2]

Actually Agricore United was simply looking after themselves when they " sold " our shares. Our equity was really an Accounts Payable to them and they sent us the message that they were only going to give us 72 cents on the dollar for it. Image if we told them that about any accounts reeivable that we have payable to them in April? They have just bowwed to the pressures of the big banks in Toronto by going public.
On Valentines Day this year they cut the heart out of the Solsgirth community when they quickly closed the elevators there. Many producers will now have another bill to face this fall when they have to start adding another 6-8 dollars/acre to get the grain off the farm.
I still have my shares............for what ever that is worth.