It's been a while since I've written about
S&W Seed Company (
NASDAQ:SANW)
and the intervening period has not been particularly kind to this small
ag-tech company. The company has continued to struggle to get
farmers to use its higher-value improved alfalfa varieties and a distribution agreement with Corteva's (CTVA)
never really produced the hoped-for benefits; likewise with a venture
into sunflower seed development. Management hasn't given up, though, and
the company is hoping that new efforts in sorghum and stevia, in
addition to better execution in the alfalfa and forage/cover crop
businesses, can finally drive some momentum in the business. This
is an exceedingly risky proposition, and the company now has the
dreaded "going concern" warning in its financial filings. It does seem
that the new Double Team herbicide-resistant sorghum product is gaining
some traction, but the company is pressed
on liquidity and has only a narrow path forward, particularly as
growing the sorghum business will require reinvestment. I can see
meaningful upside from here if management can thread that needle, but
readers should realize that this is an exceptionally speculative stock.
Read the full article here:
S&W Seed: Trying To Thread The Needle With A Refreshed Product Lineup And Growth Strategy
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