PPC has been one on worst performers in last six weeks- (30%). PPC's cliff divet began as soon as it paid the $5.50/share special dividend on Feb 17. PPC was $38 on Feb 16 and is now $22.50.....PPC is 75% owned by Brazilian food giant JBS SA which means $1.1B was paid to JBS as a special dividend. On March 5 PPC issued $500M in notes. A possibility is JBS is planning on using this $1.6 in cash to buy the 25% of PPC it doesn't own. At $30/sh this would cost $2B......A smart move for JBS would be to roll the whole company into PPC and use PPC's NYSE listing to get broader liquidity for JBS...If this doesn't happen I'd be more than suspicious about the Special div JBS effectively paid itself...the special div could be interpreted as the type of financial games Petrobras played.
this is a commodity wide story. we see over capacity in everything because there is no growth. You can believe all the feel good QE bull, but in the end there isn't any demand growth for anything.
and the price of Heinz Ketchup looks about 30% higher since the buyout due to increased debt servicing costs....this is Buffett taking money out of the 99%'s pockets.
Heinz stock is being used for currency at approximately 30x earnings.....Heinz debt service costs exceed net income. Heinz stock is technically junk.
Heinz after it went private was loaded with debt. Debt payment in 2014 was $685M while net income dropped to $673M from $985 in 2011. This means Heinz is being valued at 30x earnings when used as currency to buy your stock.
Intel maybe on the inside of Pcs, but it's not in phones and wireless. Mu would provide a way for intel to get into other markets while strengthening its presence in legacy products. Mu value above $40 in stock swap merger. 1 share of INTC plus cash