The market has pretty thoroughly scrubbed out the excess enthusiasm that took S&W Seed Company (SANW) up from less than $5 in August of 2012 to over $11 earlier this year. Not only is S&W some ways away from become the "Monsanto (MON)/DuPont (DD) of alfalfa", but I suspect the rise and fall in the shares can also be tied to the idea of S&W as a stevia play.
S&W
certainly disappointed the Street with its fiscal first quarter
results, but I think it's worth noting that most of went wrong was
outside of the company's control. More to the point, I think there's
still a very valid story here revolving around improved margins, better
pricing, and the introduction of varieties that will capture more of the
potential global alfalfa market. It's going to take longer for that
story to unfold, but a revised fair value around $9 still makes this a
name worth consideration from aggressive risk-tolerant investors.
Read more here:
Bad Weather And Delayed Sales Have Pummeled S&W Seed Company
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