Investors....come in please!

[GROUCHO MARX]

Pablo, I guess what I was trying to say was that from my time in the corporate world, I was asked many times to "explain" negative results.

Often, timing of reporting was an explanation (fund accounting). Other times, just poor management and forecasting (overly optomistic).

I'm getting the sense of poor management and an overly optomistic outlook. They should never have had the type of FX exposure if proper hedging techniques were used. They apparently gambled and lost in 2005 and got spanked for it. If they would talk in some further detail about hedging their exposures, I would feel more comfortable.

Maybe this year, they gamble and win.

 

[msparks]

FYI,

ADM just came out on my sell recommendation.

quote:

---

However, a change in federal regulations late last month is about to challenge ADM. We now need to determine whether it will withstand the future.

The change came from the US Environmental Protection Agency (EPA), which has helped us through its mandates for ethanol blending in regional gasoline supplies. In the early 1990s, the EPA came to the conclusion that key cities and counties around the US needed to change gasoline blends to cut damaging emissions from automobile usage.

A collection of states, including a strong concentration within the corn-producing Midwest, are still mandating current EPA standards and, through tax and other incentives, are encouraging the increase of ethanol composition in their local gasoline markets. As of the end of May, most states will see ethanol content reduced—if not eliminated.

This is great news for consumers, but not for ADM, the king of ethanol.

---

 

[Pablo]

GM - how much of revenue is at stake with the hedging? Bunge is the #1 oil seed processor, that is mainly what first captured my attention. They are paying attention to biodiesel and unlike corn-ethanol, there are still open pathways for biodiesel (energy efficiency, marketing, politically, etc) - and of course it will start internationally first....

 

[msparks]

FYI good article on Ethanol:

http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_4514021,00.html

 

[msparks]

quote:

---

Bunge Limited (NYSE: BG; 43.6 percent return) has also been increasing its global presence. One of the areas the company has developed a special interest for is Russia and other former Soviet Union nations.

The company bought a grain terminal in the port of Rostov, Russia, to better facilitate its operations. Rostov is located near the mouth of the Don River in southern Russia, and is one of the export outlets for grain from that region. The new acquisition will enhance Bunge's operations in Russia by serving as a strategic gateway for exports to countries in the Mediterranean, as well as in the Middle East. Buy Bunge Limited at current prices.

---

Article Update
By Neil J. George
This article appears in "Article Update" in the 2/9/2005 issue.

So this info is over 1 year old. I will be interested to see where this goes. I would be much more comfortable in the biodiesel world than the ethanol side.

 

[GROUCHO MARX]

P, if I recall what I read, hedging or lack therof, put them into a loss from a profit position in Q4.

 

[Pablo]

Thanks GM.

ELN is hopping. A lot.

 

[Pablo]

BG actually down a chunk today. Keep hammering.

Market=diving

 

[Pablo]

Good thing we didn't buy BG!

ELN not trading? Tsaybri mentioned by Paul Harvey this AM.

 

[Pablo]

ELN officially not trading today. That stinks.

 

[GROUCHO MARX]

Ms patients stormed the beltway today to demand an accelerated return of Tysabri ELN/BIIB's MS drug.

No shares of either company are being traded during these hearings.

 

[msparks]

Hey sitting pretty in cash with the "big" sale of ADM.

Will wait until the dust settles. I would still like to buy some KEF or BRBMF. Will see.

 

[Pablo]

The "news" sure did a lousy job of coverage, GM. Thanks. How long will the hearings last?

I'm done worn out buying......

 

[GROUCHO MARX]

I'll see if I can find out, P.

 

[msparks]

Looking at a broad Market ETF.

I've been watching the Russell 2000 roll across and that intersts me.

Also since the pull back is it a good time for QQQQ or SPY.

I was thinking SPY, since it only gained like 4% last year and it's off the high from the end of the year, so might be a good time to make 15-20% this year?

What do you all think?

 

[Pablo]

Thanks, GM. Some news finally popped up late yesterday and today. It's very interesting to me.


PS Who actually halts the trading?

 

[Pablo]

The companies halted trading themselves....but the news looks good right now!!!

Bloomberg Article

[ March 08, 2006, 04:17 PM: Message edited by: Pablo ]

 

[GROUCHO MARX]

Well, a couple of guys on this board are aware that I have more than a passing interest in success of this new drug.

 

[Pablo]

GM - you da man.

Still watching BG come down.

The little guy....

 

[Pablo]

cramer just called BG!!!