~SH~ said:
Rod: "How much money did it take them to start up their trucking concern?"
Irrelevant! What we are talking about here is what they are making or losing on beef and whether or not they are unfairly profiting at the expense of producers. A conspiracy that you cannot support with any hard proof.
NOT irrelevant. I'm not saying that its not legal, because there is absolutely nothing wrong with internal transfers of money, but it had to come from somewhere. Since its the beef division thats coming under fire from critics, its a perfectly reasonable place to pull money from.
So, short term, the company appears to be suffering to the stock market, NOT POTENTIAL INVESTORS since they are NOT MAKING NEW SHARE OFFERINGS. It is not uncommon for a corporation to take a brief hit to their share prices while expanding into a new market.
~SH~ said:
Rod: "Where did that money come from? Thin air? Of course it came from the profits of another area of the business. So they did an internal transfer to support a start up venture, which makes the beef side look even worse than it is. It isn't rocket science."
Hahaha!
You are honestly so conspiracy oriented that you would actually believe they would lie to potential investors about their profits??? LOL!
You can't be serious!
Ok, so where did the money come from? Since they are so badly bent and busted, how are they coming up with money for new overseas purchases, new trucking divisions, and new plant expansions? All this spending comes out of the profits of their divisions. Its not breaking the law to report poorer earnings due to spending.
~SH~ said:
Rod: "As are you! What you lay out for facts is simple speculation as well. None of your statements is supported by Tyson's press release."
Thank you for admitting that you are speculating. Me? I'm not! What I am saying can be backed up.
Then please do. Show me that the two plants that closed were LOSING money.
~SH~ said:
Give me one reason why Tyson would lie about their profits TO POTENTIAL INVESTORS???
SH, you need to learn how the stock market works. If Tyson hasn't issued NEW shares to the market, the price of their shares is IRRELEVANT! If Tyson operates on secured capital from banks, they only need to worry about large drops in their share value that can downgrade their credit rating. The share price drops from lower than expected earnings are minimal, ESPECIALLY since they can show company expansion. In other words, they take a short-term hit to their share value, but long-term it boosts the share value due to potential added earnings and added assets. This is normal business functioning, not illegal at all, but you certainly can seem to see it. Virtually every company who expands reports lower than average earnings during the expansion phases.
~SH~ said:
This move was necessitated by financial losses, not efficiency reasons OR THEY WOULD HAVE ALREADY DONE IT.
SH, since you seem to have access to their books, please prove this.
My money say you can't, because the losses in the beef division are simply amortized expenditures from company expansion. If there weren't gross profits to begin with, they could have NEVER secured the financing for the expansion, nor would the board of directors authorize them to dip into capital savings, since these funds could not be used for expansion without reporting their use to the IRS and having to be taxed on them, at least in the short-term.
Rod