I always thought this white rock insurance deal was really dumb, and today there is further proof with investors initially liking the TTC guidance I would think. Why do you want to give away part of your profit every year to pretend earnings are not volatile, so no matter what your earnings are lower than otherwise?
And now in analysing this, we have another factor in what the insurance deal provides, or takes away, and whether some insurance shenanigans will take place when it is time to pay up. Just like so many have fixed price building contracts, where the builder puts a division into administration when they have made bad deals, history is littered with LTCMs, and insurance syndicates that hit the wall. So now we have to understand White Rock as well as Graincorp.
3 years of La Nina - I'd imagine those accretions to reserves have been distributed now.
GNC Price at posting:
$7.64 Sentiment: None Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)