Morning Darth,
$90M? Really, that's it? I know they ain't getting fair market value, but that seems extremely low. You may be right, I may be wrong, but I based on what it cost just to set up the two WSF's from scratch and then stock had to run around the $90M just by themselves. Now they're up and running, I'd think they'd be worth more than that. Then add in the 20 Legacy farms, plus the feed mills and distribution.
I know we can't trust the earlier numbers given by previous mgt as to production numbers, but the hard physical assets should be easily calculated. And with the hog market and demand for facilities, I would guess all of our China assets would be in demand and garnering a premium right now. At least a premium over fire sale pricing.
If they are getting the kind of bid they are getting from the Maschoffs (sp?) for just the small amount of US assets, then how in the world would the China assets be only around the same amount? Rhetorical question, not directed specifically towards you. :)
Being in the EC group, have you seen any numbers that contradict the above? I'm guessing not, as like my previous post said, most likely they are keeping those numbers on the down low so as to not attract the vultures.
Color me stupid, but I just can't grasp the numbers being thrown around.
You can always email in private to Sherman_hickey@yahoo if you choose to.
Appreciate your input.
Regards.
