GREY:VTRAF - Post by User
Post by
indoubtgetouton Mar 16, 2012 1:20pm
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Post# 19681649
$2.5 Billion
$2.5 Billion that's what the buyer of VT will have to suck out the Canadian prairie farmer over the next few years. VT had net earnings of $250 million last fiscal year...now trading at 20+ times earnings. This is an inherently variable business with lots of risk.....so the buyer will want a quick payback of the over payment and the farmers will pay dearly for that. So how much does grain handling fees have to go up to have a quick payback....you do the math but it will obviously it will be allot! This also good for Cargil, Paterson Grain, Richardson, WIT as all they have to do is price slightly below VT.....everybody is going to make a killing except for the farmers.....So the farmers own 25% of VT...sure make a quick buck and pay dearly for it for the rest of yoru lifetime. If I were a farmer and owned VT shares...I would sell and then protest against the VT sale. If Harper and Wall want the rural vote...they will nix the VT deal...if one ever materializes!