Tim:
Gee, why would you let your subscription to The Stewart Report expire? I can't wait for his next pick, only hope it's marginable. Shorting these stocks would have been like printing money.
Seriously, AMCOR looks okay now, as long as they run with the ball; and it looks like they are beginning to do so. It is clear that the biomass operation is a unique and very profitable opportunity that has become a core business. For that reason, it makes sense to separate it from the grapes, etc., to give it a distinct organizational identity and purpose. I don't know about Stewart's comment relative to free stock, but it will at least allow the biomass unit to operate as a separate legal entity and do what separate legal entities do; i.e., borrow, raise capital, etc., for its own purposes. As more legislation is passed mandating this type of waste disposal, a dedicated entity will be better able to meet the resulting opportunities. But remember that it is still owned by AMCOR, and AMCOR is owned by its shareholders, so it shouldn't have any negative effect on us.
To get the data on the El Nino effect, I called the company and asked them. If you don't like the share price, call CEO Fred Behrens and tell him (760)398-9520. Sometimes these guys get so involved with the mechanics of the business that they forget their primary job responsibility is to enhance shareholder value. I have not done the calculation based on the most recent financial data, but this stock has got to be selling at or below book value by now. These people have got to start doing something to promote the company and start enhancing the share price - it's been "dead money" for quite a while and they have a great opportunity to do something about that right now. |
