I've liked AGT Food and Ingredients (previously known as Alliance Grain Traders) (OTCPK:AGXXF)(AGT.TO) for a while now, but I didn't expect to see the 40%-plus move in the stock since my last article in May of 2014.
Since that article, though, management has taken some noteworthy steps
to further the company's ambitions in value-added processing, food, and
ingredients - all of which does improve the company's future growth
prospects and current fair value.
There are still some fundamental
truths about AGT that some investors won't like - the ADRs aren't very
liquid (and even the Canadian shares aren't highly liquid), this is
still a competitive commodity-like business with thin margins, and
issues like weather, international trade policy, and logistics can all
influence results. All of that said, I think this is an underfollowed
and undervalued story in the food space and I think the new direction of
the company can lead to worthwhile returns for more aggressive
investors for years to come.
Read the full article here:
AGT Food And Ingredients Is An Underappreciated New Growth Story
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