Canada's Alliance Grain Traders (OTC:AGXXF)
(AGT.TO) already has a pretty decent business going for it. AGT is a
global leader in the sourcing and processing of pulses (lentils, peas,
beans, etc) and a vertically integrated processor with operations in
Canada and Turkey. The company also happens to pay a respectable
dividend.
It's not AGT's traditional processing operations that
make this a stock worth following, but rather its emerging food
ingredient and animal feed opportunities. These businesses hold the
promise of not only meaningfully reducing the volatile cyclicality of
the business, but also significantly upgrading its margins. Although I
don't believe these shares are dramatically undervalued today, I'd keep
an eye on them for the prospects of picking up shares on turbulence in
the global pulse markets or a faster ramp of the value-added businesses.
Read the full article at Seeking Alpha:
Alliance Grain Traders Turning To Higher-Margin Opportunities
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