CHS Releases Restated Financials

As most know already giant coop CHS (Cenex Harvest States) released their restated financials early today and there does not appear to be any further surprises beyond the fraud problems that we already knew.

Restatements have lowered previously released income, but we don’t see anything that is beyond expectations.  With net income of $775 million for fiscal 2018 it appears that the businesses are functioning well in spite of the truly poor agricultural conditions.

This is the 1st step in repairing their reputation.  Now it will take a number of quarters before we can have full faith it what is happening at the coop, but in the meantime we may see 25 or 50 cent gains in their various preferred shares.  When their is a fraud committed that spans a number of years their reputation can’t be repaired instantly because it points out how poor their oversight has been in the past.  All kinds of processes and procedures are going to have to be installed to short circuit future ‘events’.

The newly filed 10K can be found here.

One thought on “CHS Releases Restated Financials”

  1. The two CHS issues are now my largest single non-fund holding. Now, if we can just get PCG to restart dividends life will be good.

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