The Andersons, Inc.NASDAQ
Conditions Are Starting To Improve For The Andersons
Tristan R. Brown
Tristan R. Brown
The Rally In Shares Of The Andersons Could Be Drawing To A Close
Tristan R. Brown
Tristan R. Brown
Mon, Sep. 26, 2:56 PM
- Andersons (ANDE +0.3%) is upgraded to Buy from Neutral with a $42 price target, up from $40, at Buckingham Research, which believes the company is in the early stages of improvement as the current cycle in agriculture has bottomed out.
- The firm cites three factors - superior crop quality in the eastern corn belt, improved dynamics in wheat, and stable margins from ethanol - that could drive an attractive free cash flow yield; it estimates $100M in free cash flow for FY 2017, suggesting a 10% yield.
- ANDE is committed to achieving $10M in annual run rate cost savings by 2017, but Buckingham thinks it will beat the measure; on top of the Iowa divestiture, the firm estimates ANDE has the potential to add $0.30 to base EPS.
Mon, Sep. 26, 8:18 AM| Mon, Sep. 26, 8:18 AM
Fri, Aug. 26, 3:57 PM
Wed, Aug. 3, 4:53 PM
Tue, Aug. 2, 5:35 PM
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Tue, Aug. 2, 7:33 AM
- July monthly performance was: +1.62%
- 52-week performance vs. the S&P 500 is: +16%
- No dividends were paid in July
- Top 10 Holdings as of 6/30/2016: Middlesex Water Co (MSEX): 1.83792%, Chesapeake Utilities Corp (CPK): 1.83185%, J&J Snack Foods Corp (JJSF): 1.81791%, Northwest Natural Gas Co (NWN): 1.80509%, California Water Service Group (CWT): 1.80402%, Andersons Inc (ANDE): 1.7911%, Connecticut Water Service Inc (CTWS): 1.78364%, York Water Co (YORW): 1.76417%, Urstadt Biddle Properties Inc Class A (UBA): 1.76156%, Spire Inc (SR): 1.75542%
Fri, Jul. 1, 7:30 AM
- June monthly performance was: +5.15%
- 52-week performance vs. the S&P 500 is: +14%
- $0.15 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: Raven Industries Inc (RAVN): 2.20416%, Andersons Inc (ANDE): 2.00143%, Southside Bancshares Inc (SBSI): 1.98274%, Prosperity Bancshares Inc (PB): 1.97867%, Brady Corp Class A (BRC): 1.97715%, West Pharmaceutical Services Inc (WST): 1.9632%, Badger Meter Inc (BMI): 1.94824%, Lancaster Colony Corp (LANC): 1.94479%, McGrath RentCorp (MGRC): 1.93534%, California Water Service Group (CWT): 1.93232%
Fri, Jun. 3, 7:38 AM
- Phil Falcone and team (NYSEMKT:HCHC) reiterate their $37 per share cash offer for The Andersens (NASDAQ:ANDE), while saying they are open to boosting that amount after formal engagement.
- HC2 also reminds of its alternative proposal in which it would acquire the rail and grain units, while providing a backstop for all other company assets.
- Contrary to ANDE assertions, HC2's proposals are not "highly contingent" on financing, says Falcone, who chides ANDE management for ignoring HC2's support from players like Cerberus, Jefferies, and Credit Suisse, not to mention its strategic partner.
- Source: Press Release
- ANDE closed last night at $36.36.
Thu, Jun. 2, 8:08 AM
- May monthly performance was: +3.06%
- 52-week performance vs. the S&P 500 is: +11%
- No dividends were paid in May
- Top 10 Holdings as of 4/30/2016: Prosperity Bancshares Inc (PB): 2.0%, Stepan Co (SCL): 1.97%, H.B. Fuller Co (FUL): 1.94%, Meredith Corp (MDP): 1.94%, Andersons Inc (ANDE): 1.93%, Southside Bancshares Inc (SBSI): 1.93%, Lancaster Colony Corp (LANC): 1.92%, West Pharmaceutical Services Inc (WST): 1.92%, Badger Meter Inc (BMI): 1.91%, California Water Service Group (CWT): 1.91%
Wed, May 18, 12:59 PM
- HC2 Holdings (HCHC +3%) decision to go public with its $37 per share offer for Andersons (ANDE +28.7%) could backfire, writes Gillian Tan, noting alternate suitors like China's Cofco, Japan's Mitsui, Switzerland's Glencore, or Canada's Richardson International, who mentioned Andersons as a potential target one year ago.
- Andersons then-CEO Mike Anderson at the time said he had no interest in selling, but former Cargill exec Pat Bowe is now in charge, and the founding Anderson family owns less than 5% of the company.
- That doesn't mean HC2 will get it. BB&T figures normalized EPS at ANDE is easily north of $3 vs. the $0.96 consensus estimate for 2016. The team there says the company is worth $50 on a sum-of-the-parts analysis, or $48 based on an average P/B multiple. ANDE was a $70 stock two years ago. Its management calls Falcone's bid "opportunistic."
- Previously: The Andersons rejects Falcone proposal (May 18)
Wed, May 18, 12:46 PM
Wed, May 18, 9:15 AM
Wed, May 18, 8:06 AM
- In no surprise given its unwillingness to engage with Phil Falcone in private, The Andersons (NASDAQ:ANDE) rejects HC2's (NYSEMKT:HCHC) now-public $37 per share in cash offer for the company.
- "We believe HC2's proposals ignore our value and prospects as a standalone entity and represent an opportunistic attempt to acquire the Company at a low point in the industry cycle."
- Source: Press Release
- ANDE +30.1% premarket to $33.75, though the stock has been halted since before the rejection hit the wires.
Tue, May 17, 5:57 PM
- The Andersons (NASDAQ:ANDE) is up 27.2% after hours as Philip Falcone's HC2 Holdings (HCHC -1.2%) says it's making shareholders aware of a letter indicating its continued desire to acquire the company for just over $1B in cash.
- HC2 wants to acquire 100% of the firm for $37/share in cash ($1.043B) along with assuming $402M in debt, though it says it is looking at alternative deal structures as well.
- Shares closed today down 2.2% to $25.94, but are now quoting at $33 after hours.
- "Since January, HC2, Inc. has repeatedly expressed its interest to you and the Board to enter into a negotiated transaction with the Company that would create immediate value for all of the Company’s shareholders," HC2 writes. "Yet, neither you nor anyone at the Company have substantively responded to our $37 all cash offer."
- Now read The Rally In Shares Of The Andersons Could Be Drawing To A Close »
Tue, May 17, 5:41 PM
Tue, May 17, 10:58 AM
- Grain handler The Andersons (ANDE +0.1%) plans to significantly expand its rail business, even as it already runs the eighth largest privately-owned rail fleet in North America, CEO Patrick Bowe tells Reuters.
- Bowe, who became President and CEO in November, says he wants to take advantage of weakness in the energy industry to acquire rail cars that may otherwise have been used to move coal or oil.
- Bowe also says he wants to broaden a business handling organic and non-GMO grain for overseas buyers and domestic food manufacturers, aiming to seize on the consumer trend toward the products.
- Now read The rally in shares of The Andersons could be drawing to a close