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Gold/Mining/Energy : SASKATCHEWAN WHEAT POOL ( SWP.B - TSE )
SWP 28.22-0.3%Oct 31 9:30 AM EST

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To: Marcman who wrote (22)8/28/1998 7:56:00 PM
From: Triden  Read Replies (2) of 47
 
Competition comments are quite valid.

I have thought about the competition concerns. Obviously the merger between the Manitoba and Alberta Pools will benefit from economies of scale. However, it is unclear to me just how "modernized" the merged operations will be.

Sask. Wheat Pool is completing the first of a three year project on modernization. The related higher costs will be paid back to the shareholders with improved efficiency and corresponding lower costs.

The added bonus to the upgrade is services and appearance. The new facilities will draw a crowd "to see what is new". These new structures are very impressive. This is a perfect opportunity to introduce people to the "full-service grain handling and farm supply center".

Having said all this, the wheat pool has to diversify their revenue stream. I am a little concerned about some of the high prices they have paid to buy more companies. Time will tell if the revenue streams will justify the purchase prices.

This is still a great long term stock. I have not been able to buy more at 14.00 today. This stock may have found bottom.
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