Environmentalist see the dead zone in the Gulf of Mexico. Ethanol is dead except from more efficient means... Brazil Sugar. Wake up! It is over. By the way..Algae is done as well.
Environmentalist are arguing amongst themselves. Dead zone in Gulf. Marginal land being turned into corn fields at the cost of animal life. Hybrid corn producing 180 bushels per acre on marginal land. This is incredible stuff. Agricultural Secretary from Iowa talking about food stamps while he sees his fellow farmers seeing the end of the road for 6-8 dollar corn. Remember, sugar cane from Brazil will take over. Corn is going down to 3.50 before next planting. The love affair with ethanol and algae is over.
You see restaurant stocks. Gas prices down and energy independence on its way. People are going to go out to dinner and chicken will be pushed down their throats.
Give it 2 months. South America is planting huge amounts. American farmers will freak out when their silos are full at the time of next planting. Slowly decreasing corn to sub-3.50.
I've last lost on a trade with ppc in oct. 08 when I sold at 4 bucks. I started buying sub. 90 cents. You are small time who doesn't understand common sense. 1/4 billion in debt paid. That means something,
Balance sheet regarding debt mirrors SAFM. Not bad considering corn prices last year. Keep paying down debt. I'm good with that. When will PPC get the multiple of SAFM?
250 million in debt paid down in the quarter. Eye popping amount. Keep paying down debt. Earnings good, not great. By year end 400 million dollars in debt is just amazing considering BK and corn crisis last year. You must tip your cap to this company.
Daher is a man who has Opened the Stock Market by ringing the bell. He has 13 million shares. He has tightened the grip around the neck of the shorts. We will see.
No one cares that this thing is going to be a company with less than 500 million dollars of debt and spitting out 5 cents per every dollar of revenue as it gains 500 million dollars of revenue per year. 100 million dollars clear and free a quarter is the bottom. We are at the top right now. The bottom will always be pretty damn good. Again CAG is wrong. He was wrong last quarter when he sold prior to earnings. He was wrong when he put his toe in the water and bought and sold. He is as wrong as Jbell, Flex, and Orbit. I have seen this nonsense for years. Don't bet against corn. Buy PPC if corn is high and you have some guts, and don't sell when corn has 14 billion bushels coming down the Mississippi. Just stupidity. 14 billion bushels. There will be no significant volatility for a long time. If S.America corn corp is big, it will not matter how the sping goes. Sit back and smile.
CAG and others are going to be buried by a pile of corn. Corn conditions improved again. 62% good or excellent. They aren't even paying attention to the corn from the south which was iowa like. 8-9 foot corn. When I drove by it was jaw dropping. Corn at 4.15-4.30 will continue to stimulate planing in S.America and again next year. Gradual decrease in corn does what for a chicken producer?
CAG is wrong. Never go against corn, I understand that.
That question is what will ppc do after the NOL is finished and the company has only 450 million in debt? At that level they will have access to 5-6% money. Will they retire shares to increase earnings per share since PE is only seven. Will they continue to pay down debt? Will they pay out a dividend?
What I see them doing is simply paying down debt when it makes sense or retiring stock when it makes sense. Either way you are improving the matrix of the company. JBS will be happy with 5% margins on 9 billion in sales for the next 10 years. I will be also.
By the way everyone there has not been one article that has mentioned average yields of corn. Only thing you hear is "surprising yields". Don't fight corn, unless you have the time and the money. Farmers are holding onto corn to keep the price up. That will not last.
Planned for months...End of a great quarter. Nothing would #$%$ me off than have a frozen account with stock that is getting crushed. Just my thoughts. Back to work.