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Red River Valley, MN | Nick...I would expect the shares to drop down near $500 per share...or...whatever the true fixed costs of the factories are. If growers start withholding this falls payment from stock owners who aren't willing to renogoiate jv's, they will more than likely end up in court, possibly leading to some stock owners simply saying "screw it" sell em why I can still get something for it.
The stock is only worth something as long as we have a sugar program. If that goes away, and beet sugar is no longer a competitive source of sugar, I doubt there is enough value left in the factories after all liabilities have been paid. In that case the value of the stock is zero. Obviously this is the worst case scenario, but it could happen, look at the US steel and textile industries that have shrunk or gone overseas.
So having said that, $500 per share still doesn't look like a slam dunk no brainer investment, if it even gets down to that.
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American Crystal trades at $1,350
