cash flowWhoo, talk about a few naysayers. Bought high, AGAIN? The market doesn't care.
The new credit facility looks like an excellent stroke - lower interest rate and, unsecured. Also good time to convert to Canadian dollars when it is high relative to Aussie (on the assumption that will revert to the mean).
Comany has equity of close to $7.00 per share, EXCLUDING all capital assets. That's right, current assets minus ALL debt = $7.00 per share. Surely, all those buildings and equipment are worth something ($3B on the books) but leave that out.
In addition, business will generate $1.10 in FREE cash flow in 2010. Add that to fire sale equity. You get $8.00 per share. for each and every one of the 372M shares
Looks like the price is right for buying. Opportunuity to buy this company below $9.00 during the past four years was rare. I mentioned before to look at BG and ADM on the NYSE. Both in the same business and share prices have languished the same. That's how it works. Same for POT and MOS (N). Grain prices and related commodities' have been low for a couple of years. That will change and when it does ... Also, note that the share price is 40% off the 2008 high. ADM is down 40% and POT is down 55% and so on.
But complain about Mayo Schmidt's salary and his photogenicity if you will, as a salve for poor personal investment skill ........ If nothing else, you should have investigated the management before you bought OR conversely, sold at the 2008 high if you bought before then. NO EXCUSES.
I hope the price drops a bit more.