MASSIVE DROP!!! OH YESSS...MASSIVE DROP!!! GOD...WHAT WILL HAPPEN TO THE PROFITS MATE???
Yeah right..
1st thing first, the company has NEVER ever committed to provide 'sustainable' dividend in any form of imagination. No dividend policy, remember??? However, judging by its history, the payout ratios are as follows:
Does the above look anything like STABLE DIVIDEND POLICY?? For heaven's sake, please don't talk any more about any sustainable dividends. No way is SHV a stable dividend company, otherwise the share price would easily be $8 to $10 now supported just from dividend investors alone!
All agri risks stay with SHV...yeah right, what else do you expect? You expect that you can earn money and not take any risk? Who else will take your risk mate? If anyone else takes your risk, they take your profits as well! Duh!! Oh...if the almond prices persist as low as today till next year, yess, what will happen to the poor California farmers who then have to sell their almonds for less than their cost price? Oh yes, all the farmers will be price takers yeah? So, will they continue to keep farming at a loss? Will you keep bleeding money for many years to come? Do you think farmers are dumb people these days? They are using iPads to measure how much water is being suck from their almond trees and replenishing water ONLY when necessary!! Now, let's see what's happening?Oh...some farmers are moving AWAY from the region of water constraints to Nevada...hmm, why are they doing so?
The management is betting the company on almond prices...Oh my Goodness...you think that by using the word 'betting', you can delude everyone to think that the management are just gamblers who know nothing about running an almond business? You seem to imply that the company can be decimated by the fall in almond prices. You forgot totally that management keeps reiterating that the company WILL SURVIVE through this downfall of almond prices, (which means that the company WILL EARN MASSIVE AMOUNT OF MONEY when almond prices pick up again). As with all things, these prices are cyclical. And knowing the cost price of farming almonds in California is key. Average cost price of farming almonds now is easily in the $5-$5.50/kg in California!! So, that will set a floor price for almond prices on a long-term basis. Period.
(20min delay)