Farming is hard enough without the added issues of questionable
government actions, but that's the reality of the operating environment
for Adecoagro (AGRO).
This large South American sugar, ethanol, farming, and land company has
had to deal with the "known unknowns" of uncertainties in sugar,
ethanol, crop, and land prices, but also the ongoing problems in the
Argentine economy, the risk of larger harvests in North America, and now
the geopolitical issues between Ukraine and Russia.
Adecoagro
remains a patience-testing play on the realization of the underlying
value of its land holdings and its long-term expansion plans in
sugarcane processing and ethanol production. Today's valuation continues
to look well short of that implied by recent land transactions and
Adecoagro looks like a good value option for investors who can sit
patiently through the ups and downs.
Read more here:
Macro Events Buffeting Adecoagro
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