Viterra Inc (VT.TO)

BUY
Recently acquired ABB Grain of Australia. Terrific takeover as it puts them squarely in the international arena. Have lots of cash and expects they will engage in a lot of tuck in acquisitions.
COMMENT
Likes this company but is a little leery of the takeover they are doing in Australia because they got in trouble before because of so much debt. Also did a takeover about a year ago and he wonders if the company is going in too deep. If they can smartly integrate this, it gives them a lot more size and more of an entry into Asia. Target price is $12.74 but could go far further than that.
PAST TOP PICK
(A Top Pick Apr 1/08. Down 33.1%.) Just making an Australian acquisition giving them an opening into Asia. But the street on their growth numbers.
TOP PICK
Company has indicated it will be making more acquisitions and will increase its debt levels to do so. Have an extremely strong balance sheet so they can afford this. Making a large acquisition in Australia.
DON'T BUY
In the process of closing an acquisition in Australia. Challenge of the short-term is weighing on this company at the present time. This company does not fit his profile of what he looks for in stocks. Have such a huge fluctuating cash flow from year-to-year. Would prefer Agrium (AGU-T).
BUY
Potential acquisition of an Australian grain company could be a fairly good deal. It would allow access to the Asian grain markets. Issuing Subscription receipts for $8 and if you currently hold, it’s an almost can’t lose situation.
PAST TOP PICK
(Top Pick Apr 1/08 Down 39%) Wont be much decline from this point. Don’t have to buy immediately.
TOP PICK
Old Saskatchewan wheat pool. Is part of a stable part of the agriculture market. If we see a pickup in the agriculture market they will participate but will remain strong despite of what happens. Amount being shipped is lower than what it was and if it persists we could see analysts cutting the estimates.
BUY
(Market Call Minute.) Commodity prices are probably going to start going up very slowly. Probably a decent investment right here.
TOP PICK
Likes the food business. Will probably take a while to get it through $11 but as a way of playing the food business, it is one of the few and very well run companies that should do better.
TOP PICK
The middleman between the farmer and the consumer. They sell feed and fertilizer. Collect, store and transport the raw materials and sell it to whoever the world buyers are. Agriculture looks very solid going forward.
WATCH
Has done well since the lows in November. Has done really well with grain storage. Chart indicates there will be a lot of planting and fertilizer going on. Very attractive. Wait to see what level it falls back to.
TOP PICK
Likes it seasonally. Weather was very wet last fall and a lot of fertilizer application did not happen. Also looking for a record crop this year. Expecting growth in China and Latin America meeting grain prices will go up and more international demand for Canadian grain.
BUY
Between Potash (POT-T) and this, he would prefer this stock as you will get more bang for your buck. Has been hit harder than it should have been.
COMMENT
Very little competition has helped margins over the last year and a half. Next year is tough as it is a mid-tier stock and he is not bullish on the multiple. Benefit from great crops and are hurt by bad crops. Considering buying this at some point.
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