In this article, we will look at the 15 Best Long-Term Penny Stocks to Invest In.On December 10, Meghan Shue, Wilmington Trust chief investment strategist, appeared on CNBC’s ‘The Exchange’ to talk about the Federal Reserve meeting and the labor market.Shue expects three more Fed cuts next year, which is pretty much in line with the market’s expectations. Looking at both sides of the Fed’s mandate, we see that while we are still above target in inflation, the trends are decelerating slowly. The underlying d ...

Core Insights - Cosan, Brazil's largest sugar and ethanol producer, is planning to raise up to 10 billion reais (approximately $1.9 billion) through a public offering to manage its growing debt burden [1] Company Summary - The company is facing an increasing debt burden, prompting the need for a significant capital raise [1] - The public offering aims to address financial challenges and improve the company's balance sheet [1] Industry Context - The sugar and ethanol industry in Brazil is experiencing financial pressures, which may lead to similar capital-raising efforts by other companies in the sector [1]

Core Viewpoint - Cosan plans to raise up to 10 billion reais ($1.9 billion) through public offerings, with the sole purpose of reducing its debt, and none of the funds will be allocated to its joint venture with Shell [1][2]. Group 1: Financial Strategy - The capital raised will be exclusively used for de-leveraging Cosan, as stated by CFO Rodrigo Araujo during an investor call [1]. - The capital increase plan includes a 4.5 billion-real investment from BTG Pactual Holding and an additional 2 billion reais from Perfin Infra Fund [2]. - Cosan's founder, Rubens Ometto, will contribute 750 million reais through his family office, with a follow-up offering of up to 2.75 billion reais also planned [3]. Group 2: Joint Venture and Performance - Raizen, the joint venture with Shell, is one of the largest energy companies in Latin America but has faced challenges due to low sugarcane yields affecting its financial performance [2]. - Cosan reported a net debt of 17.5 billion reais ($3.3 billion) at the end of June, which remained stable compared to the end of the first quarter [4]. Group 3: Leadership and Succession - The financial restructuring is also intended to facilitate leadership succession at Cosan, with Ometto or a successor expected to remain chairman for the next six years [3].

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA reached $36 million, marking a 60% year-over-year decrease [17][18] - Net sales totaled $324 million, an 8% increase year-over-year, driven by higher volumes sold, mainly ethanol [17][18] - Net debt amounted to $679 million, a 6% increase year-over-year, attributed to an increase in short-term debt [31] Business Line Data and Key Metrics Changes - Rice operations achieved record productivity, but rice prices are declining [14] - Sugar, Ethanol, and Energy business saw a 31% year-over-year decrease in crushing volume due to dry weather [18][19] - Farming division reported a 25% year-over-year increase in total production, driven by higher planted area and record productivity in rice [18] Market Data and Key Metrics Changes - Ethanol sales increased by 15% year-over-year, attributed to a commercial strategy that capitalized on last year's carry of ethanol [20] - Sugar production mix stood at 42% with lower sugar content due to previous weather conditions affecting yields [19] Company Strategy and Development Direction - The company aims to leverage cutting-edge technologies to transform traditional agribusiness and explore new projects [6][12] - Tether's investment is focused on supporting sustainable developments and maximizing long-term value through disciplined capital allocation [12] - The company is exploring organic and inorganic growth opportunities in Latin America [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of yields due to recent rainfall and expects to accelerate crushing in the second half of the year [23][48] - The macroeconomic environment in Argentina is perceived positively, with improved export conditions and a more realistic dollar system [84] Other Important Information - The company has committed to a minimum distribution of 40% of cash generated from operations, with $64 million to be distributed this year [30] - The new board has been formed to support the company's strategic direction and ensure high standards of governance and transparency [60] Q&A Session Summary Question: Expectations for sugarcane crushing volumes - Management expects to meet last year's sugarcane crushing volumes through improved yields and potentially higher harvested area [37][46][48] Question: Unit economics for different crops - The economic performance of crops is analyzed over a campaign, with corn being prioritized for better economic results [38][50] Question: Opportunities for growth in Latin America - Tether sees potential for both organic and inorganic growth opportunities across all business segments, particularly in energy and agricultural inputs [39][44] Question: Transparency and governance with new control group - The new control group is committed to maintaining high standards of transparency and governance, with protections for minority shareholders [57][60] Question: Plans for land monetization and stock liquidity - The company is exploring mechanisms to unlock value from land holdings and aims to maintain liquidity despite changes in shareholder structure [71][76] Question: Timeline for new investment projects - Projects will be carefully analyzed and executed without haste, with results expected over the next twelve months [80][89] Question: Size and capital requirements for future growth - The company is open to significant growth opportunities, with access to financing supported by Tether's substantial profits [92][95]

Financial Data and Key Metrics Changes - Consolidated adjusted EBITDA for Q4 2024 reached $103 million, with a total of $444 million for the year, marking an 8% year-over-year increase [14][5][10] - Gross sales totaled $368 million in Q4, with annual revenues reaching almost $1.5 billion, a 2% increase year-over-year [14][10] - Net cash from operations for 2024 was $161 million, allowing for a minimum distribution of $64 million in 2025 [10][41] Business Line Data and Key Metrics Changes - Record results were achieved in the rice and dairy segments, while the sugar, ethanol, and energy business marked operational records despite challenges [14][15] - Adjusted EBITDA for the farming business totaled $4 million in Q4 and $103 million for the year, consistent with the previous year [35][36] - In the sugar, ethanol, and energy business, adjusted EBITDA was $105 million in Q4 and $364 million for the year, impacted by losses in biological assets [28][14] Market Data and Key Metrics Changes - The sugar mix reached 52.2%, with total sugar production hitting 832,000 tons, both new records for the company [19][28] - Ethanol prices have been recovering due to strong domestic consumption, although still below the previous year due to the depreciation of the Brazilian real [22][81] - The company sold over 600,000 carbon credits at an average price of $14 per credit, totaling $9 million in net sales [24] Company Strategy and Development Direction - The company is focusing on vertical integration to cater to both export and domestic markets, enhancing its product portfolio [6] - Investments are being made in expanding sugarcane plantations and developing biomethane production in Brazil, alongside rice and dairy operations in Argentina and Uruguay [10][43] - The company aims to maximize sugar production due to its attractive premium over ethanol, with a strategy to gradually increase hedges as prices rise [55] Management's Comments on Operating Environment and Future Outlook - Management noted that the Brazilian sugar production is expected to be smaller due to adverse weather conditions, which may lead to higher sugar prices [54][30] - The company anticipates a slight increase in annual crushing figures for 2025, assuming normal weather conditions [30] - Management emphasized the importance of community engagement and talent development through various programs [11] Other Important Information - The company distributed $102 million in 2024, exceeding its distribution policy by $32 million, with a 9.4% distribution yield [39] - Net debt remained at $522 million, with a liquidity ratio of 4.5 times, indicating strong capacity to repay short-term debt [41][42] - The company is currently in discussions regarding a proposal from Tether Investments to acquire a majority stake, but no further comments can be made due to legal restrictions [44][46] Q&A Session Summary Question: What are the main triggers for positive price action on sugar? - Management highlighted disappointing crops in the Northern Hemisphere and a smaller Brazilian crop as key factors that could drive sugar prices higher [52][54] Question: What are the potential impacts of U.S. import tariffs on Adecoagro's business? - Management noted potential benefits for South American soy and corn production due to tariffs, as well as opportunities in rice and dairy markets [56][58] Question: When can more clarity be expected regarding the Tether offer? - Management stated that no further comments would be made until deemed appropriate, emphasizing normal operations and focus on delivering results [74] Question: What are the constraints around raising sugarcane crushing volumes? - Management indicated that weather conditions and the selection of sugarcane for harvesting would impact crushing volumes, with expectations for improvement in the second half of the year [70][72] Question: What are the expectations for margins in the sugar and ethanol division for 2025? - Management expects production costs to be similar to last year in real terms, with a slight decrease in dollar terms due to various cost components [91][92] Question: How are production costs calculated with tax credits? - Management clarified that production costs are calculated based on the ethanol sold during the year, with expectations for similar production costs moving forward [102][106]