Viterra Inc (VT.TO)

COMMENT
People are interested in acquiring VT because of the changes in the Canadian Wheat board.
DON'T BUY
Not really a “go to” stock for him anymore because of the changes that are happening in the Canadian deregulation of the wheat board. This will have some impact on the company that is modestly positive but it is very important to keep track on the handling margins. Fairly valued at $11.
BUY
Likes it for the long term. Will be a beneficiary o the demise of the Canadian wheat board. More people will want to sell through them. Will be competitive within that business. Likes the balance between North Hemisphere and South Hemisphere. He will stick with it. Could do well over the next few years.
COMMENT
(Market Call Minute.) Proven to be a little riskier than was thought. People are holding because they think the break up of the Canadian wheat Board will be beneficial for it but lost money last order because of their marketing division.
DON'T BUY
Has it as a neutral with a target of $11. Likes it fundamentally as a long-term story.
DON'T BUY
Somewhat a prisoner of its Saskatchewan pool legacy. Pools were not primarily set up to make profits but to serve the interest of the farmer. They were very heavy on building up a lot of capital facilities and not focused on getting a return. If he wanted to play agriculture, he would be inclined to look at some of the US companies or fertilizer.
BUY
Good, long-term hold and this is a good entry point. One back one disappointment of the grain handling side. Has disclosed that the winding up of the Canadian wheat Board will add $40 million in EBITDA to their bottom line this year. If this does happen, you are looking at a $13-$14 stock so under $11 is a good entry point.
HOLD
There was some noise over the Cdn Wheat Board’s recent decision, which probably hurt it a bit. Thinks the worst is over. He is currently getting interested in the agriculture space.
TOP PICK
Doesn't feel the market appreciates the structural changes that are going on in the industry with the demise of the Canadian Wheat Board. Expect that grain handling margins will be going up because of this. Lately there have been stronger fertilizer volumes.
DON'T BUY
On a long-term basis, you are ok. But short term he prefers AGU-T
WATCH
His model price is $16.67, which is a 55% upside but for him, he has to see you go about the $11.40 level. This is a cyclical and cyclicals sometimes do okay but this one is waiting for some good economic/world growth news probably. Possible target of $16.
BUY
With the government planning to scrap the wheat board, will this benefit companies like this? This company will be one of the prime beneficiaries if the wheat board is disbanded. They are already one of the main grain handlers. Into agro products in Canada and Australia. Very attractive price.
COMMENT
Company is amazing in its depth and breadth. A very serious, world scale company and owns 95% of the grain space in Australia. There has been a 30% falloff recently on the price of wheat. The stock has been stuck in a narrow range for a very long time.
COMMENT
This is an agricultural play. Demand for higher protein diets continues to grow from emerging markets. Price-to-earnings or price-to-cash flow is a reasonable way to value this company. Be aware that it is cyclical as it is a commodity play. Both geographically and seasonably diversified.
BUY
Favours the agriculture sector. This is the handling and processing company will benefit from the upper trend in agriculture. Doesn't have as much of a direct play but is a slower and steadier player. Good networking Canada and they're getting into Australia. Good play for the long-term.
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