Tam and SH,
Both of you need to go back and read SH's original statement. He said that there had to be competition in the cattle business or the smaller companies would remain in business.
I said that companies buying each other out had nothing to do with competition and offered examples to prove that.
SH then admitted there are other reasons that would allow for the sale,"Yes Sandhusker, there "CAN BE" many reasons why small companies sell to large companies some of which you listed.", but then says, "Sandhusker: "Competition has ABSOLUTLEY NOTHING to do with an outfit buying anybody else out. THOSE ARE YOUR EXACT WORDS and that statement is flat out wrong! ' SH, you agree with me but then in the next breath tell me I'm wrong! :lol:
Both of you - some homework. Actually, it's a reassignment :wink:
Here are the 6 reasons I posted. I'm sure there are more, but that doesn't really matter. Read each one and then try to tell me how there would have to be a competitive market in place in order for it to happen.
If you can't, then SH is wrong. Remember, he said that big companies buying up smaller companies proved there is competition. Have fun, kids.
) Larger company buys controlling interest in smaller public company
2) Larger company offers enough to a private company to get a deal
3) Larger company takes a temporary hit to bottom line by outbidding the smaller company until they go belly up.
4) Companies simply merge
5) Small undiversified company doesn't have deep enough pockets to last an extended downturn in business
5) Government regulations make it tougher on smaller companies, thus weakening them
6) Litigation