My biggest issue with investing in Adecoagro (AGRO)
has always been its vulnerability to commodity price swings, and those
swings have been hammering the company and the stock over the last year.
At the same time, management has continued to invest in projects that
it believes will deliver meaningful long-term growth – the latest being
the acquisition of Argentina’s largest dairy processor.
Adecoagro
has shown that it can run its diverse operations well, but efficient
operations in sugar, ethanol, and farming can only go so far in the face
of commodity price pressure. With that, the shares do still look
undervalued, but the company’s exposure to commodity price risk may be
too large for some investors.
Read more:
Adecoagro Continues To Invest In Growth Amid Brutal Commodity Pressures
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