This is from 'Herald Sun' today. I recommend DYOR as I never pay much attention to what analysts state, as sometimes they're conflicted (they may want retail plebs to sell so they can buy) or are not as well informed as one would think (because thet cover so many stocks any miss the detail).
For instance analysts rarely mention how GNC has a new facility at the Port of Vancover, BC, Canada that as 'HC' contributor opined may be a hedge against Australian drought years. Analysts also fail to consider how with GNC there's a chance dividends may further increase, and also how because there's always a lag in getting the 'up-country surplus' onto bulk ships, the company tends to benefit for a while even if a drought commences.
Plus while no certainty, there's a chance the La Nina effect may continue this year, which has already started out extremely wet in southern Queensland and a fair swathe of NSW. Even Victoria had or is having decent rain in the last 24 hours plus today, with areas loike Walpeup in the Mallee having benefited.
Another winner has been GrainCorp, which has been hitting record highs, is up 11 per cent in a week and has doubled in the past year.
Russia and Ukraine are both big wheat suppliers and Ukraine’s export terminal has been closed.
Mr Golowenko said GrainCorp was already benefiting from a booming domestic grain harvest and good local growing conditions.
“Global wheat production and more broadly global food production is another area of potential disruption under the current conflict, with elevated prices and volumes benefiting GrainCorp,” he said.
Ukraine, Ukrainian is one of the world’s biggest wheat exporters. Picture: Vincent Mundy/Bloomberg
However, stocks like GrainCorp may not have much upside left.
Baker Young managed portfolio analyst Toby Grimm ha recommended selling some GrainCorp shares as “they have had two bumper crops in a row and prices are elevated”.
“From a long-term investment perspective, it’s difficult to see them going spectacularly better than they are at the moment,” Mr Grimm said.
(20min delay)