Saturday, March 7, 2009

Alcoa has the beef!

Interesting blurb about Alcoa owning cattle in Australia

Here's the link:

Here's the actual story:

MELTING POT: Alcoa beefing up its operations

Alcoa Inc. is cashing in on what may be the world's last bull market: it is planning to auction off 700 weaner steers online.

In what is a little-known fact, the Pittsburgh-based aluminum producer, via its Alcoa Farmlands, owns the largest beef breeding herd in southwest Western Australia. The cattle are expected to weigh between 615 and 750 pounds apiece, according to Australia's Weekly Times. Alcoa Farmlands has about 11,000 beef cows, including 2,200 Angus breeders and 1,400 Angus cross Murray Grey and straight Murray Grey...

Thursday, February 5, 2009

Should Dow Chemical (DOW) Purchase Rohm & Haas (ROH)

Here is a link to an article about some rich guy telling Dow Chemical (DOW) to complete the merger with Rohm and Haas (ROH). I'm still learning the blogging thing so if there is no hyperlink (sorry) just copy and paste the address into a browser window.

WHAT A JACKASS! My first question is why is it news? If the purpose is to show HOW SHELFISH THE GUY IS then cool. I guess for that I am grateful for the report.

The story is that he owns almost 10% of ROH and has a big paper loss with the expectation that he will have an actual loss if DOW does not go through with the purchase of ROH. Oh well bro, the deal didn't go through and in my opinion should not go through with the current terms. In arbitrage there is always the possibility that a deal dose not go through. I assume you way the odds of success and failure and calculate profit potential and loss potential. If the possible profit justifies taking the risk of loss then do the arbitrage transaction.

Hey rich guy, you took the gamble and maybe you lose this time. Send a letter to DOW saying do the deal even though paying 15 Billion (1.5 times DOW's 9 Billion market cap) for a company that has 9 Billion in revenue and 700 Million in profit seems pretty steep especially in the current market. You just look like a selfish jerk. DOW do the deal even though your major source of funding fell through and now you have to borrow most of the 15 Billion. Yeah rich guy makes no sense but if DOW can make you richer without you even investing in DOW why shouldn't everyone be cheering for the deal.

In my humble opinion you rich guy are the definition of a JACKASS!

Friday, January 2, 2009

Interesting Long Term View for Harley

I'm new to blogging so I hope I do this right. I found this opinion piece about Harley.

Here's the link:

In 2009: Be a HOG!!!.

Take a look at the post and the comments, there's a lot of divergent opinions of Harley. I agree that if we look at the economy today there are reasons to be pessimistic about HOG or most companies for that matter but in 5 years, 10 years, 50 years is Harley going to be making bikes and more of them than today?

I own Harley and I bought in at close to the low for 2008 so I have a nice return so far (30 something %) so I could sell now and feel good but I will not. In times of extreme pessimism about the general economy and specific companies it is very hard to see good times ahead. The thing is that pessimism will slowly change and eventually we will be back in the good times, the economy will be growing and Harley will be making more bikes than ever.

Below is part of the post (I included the blog title and links to the story and comments)

In 2009: Be a HOG!!!

January 02, 2009 – Comments (6)

A lot of companies have been beaten down by the economy, we all know that. But I am an eternal optimist when it comes to the American economy and its ability to come back with a vengeance. In my opinion right now is one of the greatest, and maybe the greatest, time to buy undervalued companies in the last half a century. One company that I have recently added to my portfolio (a little disclosure there) is Harley Davidison (HOG). If there is a company that I can see being around 50 or even a 100 years from now, this is one of them. Here are the following reasons why:

1. Brand Power - Everyone knows what a Harley is and nearly everyone would love to have one.