Jason said:It is clear to see jealousy is the motivation of anyone who doesn't accept there are tight margins in commodity based industry.
Tyson looks to be a very well run company that takes its bumps in the road because it has planned for them. If they hadn't they would be broke.
Sales dropped by $108 MILLION. That is no illusion lie or hidden money. That covers all sectors of their business. They didn't pull money from here to hide there.
Capital expenditures don't all come from sales in the current year. That can be saved money or borrowed money.
Rod said:They had capital expendures and debt reduction of 1.25 billion. Thats 20%! In business, the difference between a profit margin of 5% and 25% is huge, even if that means they've went from making $1.00 to a $1.20.
Rod that logic isn't correct. They didn't hide profits in expansion (capital expenditures), they made additional expansions to continue to grow and to pay off what they already owed.
I know that's hard for some to understand. But if you buy a piece of land and have annual payments, what happens if your income falls due to slow markets? You see you are going to be short for next years payment. One option is to borrow more money and expand a sector of your business that will pay back itself and make up the shortfall on land payment. Sometimes the borrowed money is what is used to pay the original loan until the expansion is profitable.
If Tyson is making such good profits, buy stock. If they aren't, don't!
Margins are tight in commodities, Jason. Money is made off of volume, not large margins. Everyone knows that. Ask almost any farmer. Who did you have in mind with your your little jealousy bit?
Jason:
"Rod that logic isn't correct. They didn't hide profits in expansion (capital expenditures), they made additional expansions to continue to grow and to pay off what they already owed."
You do have a knack for saying exactly what you said was incorrect yourself.