Monday, June 23, 2008

Agriculture Consolidation: Bunge (BG) to buy Corn Products (CPO)

Posted by TraderMark at 9:38 AM TweetThis
These names are not really my focus in the sector, but Bunge (BG) has a fertilizer component to it, and while I don't really care too much about the acquisition I like the increased guidance. A trend I expect to see across the fertilizer space as we move ahead.
  • Fertilizer producer and oilseed processor Bunge Ltd (NYSE:BG - News) said on Monday that it would buy Corn Products International Inc (NYSE:CPO - News) for $4.4 billion to gain a leading position in finished corn products such as starches and sweeteners.
  • Separately, Bunge raised its 2008 earnings forecast to $9.35 to $9.65 per share from $7.10 to $7.40, not counting the effects of the acquisition, which the company expects to close in the fourth quarter.
  • Analysts were expecting Bunge to earn $7.59 a share in 2008, according to Reuters Estimates.
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Posted by TraderMark at 9:38 AM Comments (2) | Edit This Post | Create A New Post

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2 comments:

sdk_IV said...

The Saudi energy "conference" was worthless...nothing more than a sorry attempt to appease their Western customers who have been complaining to them. Now that that nonsense is over, are you rethinking your position on oil/commodity prices? Theres really nothing standing in the way of higher prices aside from an impotent Fed who is going to futilely attempt to talk down commodity prices by threatening to raise interest rates--even though we all know that thats an empty promise during an election year. Are you rethinking your sizeable positions in DUG/SMN?

June 23, 2008 12:14 PM  
TraderMark said...

No I am not

My positions have nothing to do with that "for show" conference

Let me put it this way, if oil keeps racking it up and gets to $150+ the world economy will slowly be grinding to a halt. If one believes that is good for the stock market, one must work for CNBC. I am not short "oil" - I am short oil stocks... oil stocks still trade on exchanges.

So oil $150, $160, $200 whatever leads to worldwide economic crunch = stock markets imploding = we still win.

Something needs to break.

The higher it goes, the more vicious the reversal. The reality is oil has not been moving much the past 3-4 weeks - range bound here in the $130s.

June 23, 2008 12:30 PM  

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