American Vanguard (AVD)
has long been a volatile small-cap stock. Some of that can be chalked
up to the vagaries of the agricultural chemicals market, a business
where the likes of FMC Corp. (FMC)
have also had ample ups and downs. Some of it, too, can be attributed
to the fact that investors in agricultural stocks often seem to look and
think no further than the next harvest, so planting, weather, and
harvest data can make these stocks move in the opposite direction of
fundamentals.
To that end, I think it's worth checking out
American Vanguard today. Although I do have some long-term concerns
about the company's position vis a vis new GM crops that target
lucrative parts of the company's business, I believe there's a very good
chance that the stock will deliver stronger results in the short term
as capacity upgrades and strong marketing support from partner Monsanto (MON) lead to much better herbicide and pesticide sales.
Continue on here:
American Vanguard Should Reap A Better Multiple
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