more good reading: from RB: jim
By: rashomonlynch
Reply To: None Sunday, 25 Jul 1999 at 11:33 AM EDT
Post # of 27089
NEWBIES!!!
Peter Lynch, formerly of Fidelity Investments, and forever tied with the success of the world's largest mutual fund (Magellan), always says:
(#1) "Know what you own" and
(#2) "Know why you own it"
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(#1) STRU's business involves the delivery of swine genetics and embryo transfer using advanced reproductive techniques. (I recommend all shareholders study and research all issues relating to hogs.)
(#2) I own shares of STRU primarily because the methods and techniques of hog farming are being restructured. The restructuring is having the magnitude and effect of an "earthquake." The old methods will fall by the wayside and the new methods will dominate.
For example, about 80 percent of the counties in Iowa are affected in some manner by a hog virus. Let's call the virus "pig rabies"...technically known as Pseudorabies virus (PRV) and is a type of herpes. This virus causes reproductive problems, including abortion, stillbirths, and death. About 510,000 hogs in Iowa (605,000 Indiana) are affected and in quarantine. The packers/processors cannot take these hogs. Genetic development is stymied.
The Netherlands had to kill about 800,000 hogs about six months ago. The Danish had to kill about 600,000 recently. Malaysia had about 50 people (humans) die and had to kill about 27 herds.
Does this industry segment need a company like STRU to assist in solving problems for the hog farmers in the USA and abroad? I strongly believe the answer is "yes." The "longs" on this board have posted a whole college education regarding STRU and this industry segment. I recommend newbies read all posts by:
mx_s
BKR
JEFFSIMON
MGhell (Post #26975 has best of best posts)
davida2
AndyG1 (Andy has been here since Post#40 or something)
Further, I think I have posted a few good kernels of
knowledge. Investing in the pennies is very risky. What I look for are two primary factors: (#1) Honest management and (#2) a growth industry. If you can find a penny stock with these two components, you generally have about 50 percent of the battle won. IMO, these two components are present with STRU.
Please remember: Rhett, Richard, and Doug are former shareholders (large) in the old company. They did not like what the old company was doing and basically "took over." They know first hand the perspective of a shareholder. Equally important, they know hogs, inside and out, and actually do the procedures themselves. Nobody wants the share price to go up more than them.
I also visited the company on Friday, July 16. Any "longs" with general type questions, please feel free to email me. The principals of STRU called the upcoming boar semen conference the "olympics of the industry." The conference is only held once every five years, however, this year changed to the fourth year because of other scheduling issues. Let's hope some positives can come out of this conference for STRU. About 200 world leaders of this industry segment will be at the conference and STRU is one of corporate sponsors.
My aunt in Nebraska sold their 500 breeding sow operation during the fall, 1998. Here is a summary of their operation:
500 breeding sows (raised)
100 gilts
50 breeding boars (purchased)
3,550 pigletts of various sizes; 5 to 240 lbs.; 50% male; 50% female.
4,200 TOTAL
The breeding boars tend to sell at 2 to 3 times that of a breeding sow. When my aunt sold the hog operation, the new buyer brought in their own boars from Denmark. Yes, Denmark!!! I think STRU has some Denmark history. My aunt told me, the operation is doing much, much better than her former operation.
Many of STRU's secrets relate to:
-eggs and sperm
-the definition of the word "exponential"
-the ability to store, and transfer, the embryos for commercialization
-Washing, Media Solution, and Genetics
DD never stops. Please continue with the DD and share findings with others via positive posts.
sincerely, rashomonlynch
(greg lynch)
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