CWB Privatization Dilemma

[cottonpicken]

Jesus Dave my eyes are half closed and it's an hour past my bedtime and you just burnt your handle to the ground. Google mf global and the carnage that wrecked. There was a vaccum in time that we could have filled but I guess thats above your pay grade. Ill do my slaughtering in the morning.

[bucket]

Farmaholic

If you bid 200 million for the cwb the proceeds go into the company's bank account that you just bought. The winning bidder has that 200 million to use. If they turn around and sell it the next year for 500 million there is then 700 million to current purchaser.

The government is giving it away.

And since there is no public accounting of the current cwb it's hard to think otherwise.

Listen to nonsense in question period something should be announced soon. My guess is the deal is done already. They will wait for the break to announce the new member of the graincos tea.

[dave4441]

And you wonder why no one engages you on your broker idea Cotton. You believe the CWB was something that it simply wasn't. I would suspect CWB was a customer of a MF Global. I met one of their brokers on the floor of the wheat pit in Chicago. They didn't even have their own guy there? At least I can tell you are still living in tin foil hat country.

[mbdog]

As much as I want to bury the old CWB hard, fast and deep when I hear Pat Martin open his mouth...not likely its the best/fairest path forward. I think the Feds are progressing in a considerate and responsible manner under the circumstances during this period of change, and rightfully behind closed doors.
We wouldn't be in this mess if the "Martins" of the past had been reasonable.

[bucket]

I am waiting. This thread is going to get interesting soon.

[farmaholic]

What will happen to the supposed $5/tonne equity stake, earned on every tonne delivered to the new CWB, in what ever happens to it after privatization?

[bucket]

Remember sask wheat pool?

Much the same. Diluted to nothing. And yet swp was worth billions in the end.

Go figure.

Farmers are easy targets.

[foragefarmer]

Bucket

When you state the 200 million goes back to the winning bids bank account, why wouldn't any winning bid funds go back to the Feds and then somehow to farmers.

Please explain as I'm not understanding your point. Thank you

P.S

I strongly oppose the CWB being sold to any grain company and every effort should be made by the Conservatives so that it remain as an independent grain company operating on it's own. Farmer's own all the assets not the Feds, it can easily raise capital if a solid business plan was put forward.

[farmaholic]

There will be only one vision for it's future followed and that path has likely already been determined.

[jdepape]

Why is there so much interest in farmer ownership of CWB?

First - farmers don't own CWB, nor any of its assets. It's all owned by the crown. The railcars, the office building, the lakers. All of it.

Thinking farmers own a stake in CWB based on previous sales is like thinking you own part of Canada Post based on the number of stamps you've bought over the years.

Why do farmers think they need to own grain handling assets? Do they see big profits earned by the graincos and want a piece of that? I've seen farmers invest in local inland terminals for that very reason, but then don't delivery TO THEIR OWN ELEVATOR because they can get a nickel a bushel more elsewhere. Do they think that, as an investor, they can reap big profits while - at the same time - as a farmer get better prices?

If it's investment in the your industry you're looking for, invest in ADM, or Potash Corp, or CN, or Weston's.

But if its control you want and you have $100,000 burning a hole in your pocket, invest it in your own operation - use it to market better.