Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: big guy who wrote (9902)	6/1/2005 10:12:50 AM
From: Tommaso	Read Replies (1) \| Respond to of 37387

In other words you will wait for RSI to become more expensive and then buy it?

To: big guy who wrote (9902)	6/1/2005 4:34:37 PM
From: Taikun	Respond to of 37387

big guy, I owned it for awhile. Maybe I should have been more patient. I had a pretty good run from the $3 range, but the financials that came out a few months ago weren't promising so I sold. Declining margins has been a persistent problem: Gross margins on a per metric tonne basis were $102.13 for the quarter compared to $111.31 for the comparable quarter last year. The decrease in gross margins was mainly due to the increase in natural gas cost and higher gas consumption in Taber due to the larger beet crop. globeinvestor.com Gross margins of $27,379,000 were almost $2 million lower than the comparable quarter of last year, of which $1.3 million is due to the lower volume. On a per metric tonne basis, gross margins were $151.56 this year, compared to $156.16 in fiscal 2004, a decrease of $4.60 per metric tonne. This decrease is due to the unfavourable sales mix, and to a higher level of sales made from Taber, where operational costs are higher on a per metric tonne basis. Energy rate in the first quarter was in line with last year's energy rate. globeinvestor.com I also don't like the two debt issues. When I see a trust with debt like RSI, I think I'd better buy the debt if I want in. I don't think the management is that good actually. Someone like the UK's Tate & Lyle (TATTY.PK) or America's ADM is pretty levered to the global sugar busines AND Splenda, the #1 sugar substitute. If I were buying sugar I'd buy TATE.L or ADM, but the yield isn't great. Have you looked at US BGF, pretty decent yield there for a food company, about the same quality company as RSI but a little higher yield (and they make some products with Splenda). I know the Splenda patent is running out but Tate & Lyle's PR has done a pretty good job of promoting the name. The Canadian trust ABF.UN is also the master distributor for Splenda in Canada, but not a great company. I think for N. America sugar substitutes are the business, not sugar. If you want to play sugar on Asian demand, I wouldn't buy N. American-focussed names like RSI, BGF, ABF, I'd buy TATE.L, ADM. David

To: big guy who wrote (9902)	6/2/2005 10:07:54 AM
From: Schnullie	Read Replies (1) \| Respond to of 37387

<<How safe do you think that 10% yield is?>> According to their website, the divie (actually listed as "interest" and return on capital) has been in place since Dec 1997 or so, although the distribution frequency seems to have changed frequently with time. Currently monthly but formerly bi-monthly, quarterly, and even 5 months in one year. Prior to 1999, the dividend was about twice what it is today, and shows a trend of gradual decline. Hasn't varied in the last 16 months or so. Note the "Outlook" from their Canadian Interim Status report for 2nd quarter 2005 - sounds like the Adams Diet has hit Canada: Outlook: The sugar market declined slightly again in the second quarter of fiscal 2005 when compared to the same period of 2004. It is still too early to assess if this decline is due to timing or due to consumers changing their eating habits. The shift in sales mix from consumer to industrial sales is likely to continue, which could negatively impact overall gross margins. In addition, the market remains highly competitive, and Lantic / Rogers will continue defending its market share against local and import competition.