Agricultural and ethanol company Adecoagro (NYSE:AGRO)
has been one of the few companies with significant operations in Brazil
to do reasonably well over the last six months or so, although most of
that outperformance has come since September. I've liked this company for a while,
particularly because of its efficient sugar and ethanol operations in
Brazil and its undervalued land assets in Argentina, and now it looks as
though at least some of the macro factors influencing the company are
pointing in a more positive direction.
Brazil's weak economy and weak currency remain real
issues for the company, but Argentina's adoption of agriculture-friendly
tax and policy reforms should offer a real boost to Adecoagro's farming
results in the coming years. Weak global commodity prices remain a
challenge, and it may take longer for Argentine land values to
appreciate, but Adecoagro still looks modestly undervalued today.
Follow this link for more:
Can Better Policies In Argentina Take Adecoagro Higher?
No comments:
Post a Comment