Over the last few days I have taken a position in NUF on the basis this stock is totally oversold.
During May NUF traded mostly in the range of $12 -$12.50, then NUF raised institutional money at $11.25 (raised over $300 million) & had a SPP at $10.18. So the financial strength of NUP has been greatly enhanced through the raising of additional funds to lower its debt level.
Farming is a difficult game even without a Global Financial Crisis, but we are dependant on obtaining our food supplies irrespective of financial markets.
Two key ingredients for our food supplies are fertilizers & herbicides, no farmer is going to farm without these ingredients.
Whilst farming is very unpredictable & circumstances can change quickly i.e. weather, it would appear Australia is off to a good start this year & only needs follow up rains to produce a good season, while countries like Brazil are now receiving Government assistance to see crops are being planting.
The reality is farmers will be supported & encouraged to plant & grow crops, so the dominant market position of NUF in the herbicide section should eventually see a return to normality, irrespective of whether a few institutional fund managers are unable to hold onto their stock & must sell down.
This recent selldown in NUF has only created an opportunity for investors who like value in a near monopoly market that is essential for providing our food supplies.
Regards
Buffett
PS Owning the essential input suppliers to farming is easier than farming & also more profitable, because less risk.
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Last
$4.02 |
Change
0.060(1.52%) |
Mkt cap ! $1.536B |
Open | High | Low | Value | Volume |
$3.89 | $4.03 | $3.82 | $17.59M | 4.441M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 2815 | $4.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$4.02 | 9998 | 1 |
View Market Depth
No. | Vol. | Price($) |
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1 | 5000 | 3.990 |
3 | 1476 | 3.980 |
1 | 966 | 3.970 |
1 | 966 | 3.960 |
5 | 9366 | 3.950 |
Price($) | Vol. | No. |
---|---|---|
4.030 | 6210 | 1 |
4.040 | 1064 | 2 |
4.050 | 966 | 1 |
4.060 | 3966 | 2 |
4.070 | 7376 | 2 |
Last trade - 16.10pm 16/08/2024 (20 minute delay) ? |
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