GREY:VTRAF - Post by User
Post by
financo_valueon Aug 02, 2010 5:11pm
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Post# 17315615
Viterra, take your money and run.
Viterra, take your money and run.The fires in Russia are destroying millions of acres of farmland. The Europe branch of Viterra will likely see volumes drop precipitously. Drought conditions in Eastern Europe, where Viterra has operations are severely reducing crop outputs. 2010 is basically a write-off and we just have to hope they don't lose too much money.
Important to note that Viterra only has 2 debt securities rated as investment grade (BBB-)(barely investment grade.) The other debt issues are rated junk. It's disappointing that this company, after all these years, is still just treading water and loaded down with debt.
With these business conditions, we can hope for the best, but prepare for the worst. If the credit markets tighten or if the losses are substantial, this company will be in trouble.
If you are sitting on a profit, consider taking it. The action on Friday was clearly smart money taking money off the table. I honestly think that this is a $5 stock and we will be visiting the lows later this year.