$7 target for shv, page-3

On the 5th of Feb, in the business section in some of the Fairfax papers, there was a full page article by Chris Gibson headed 'Drought in California likely to benefit local almond producers'.

As you would expect, the article mentions Select Harvests:

'In contrast to California, Murray-Darling Basin Authority data indicates much of Australia's almond-growing region has good water-storage levels...'

'Select's shares recently touched as much as $6 and closed on Tuesday at 5.75. Investors have applauded a refreshed management team's decision to cease its WA expansion; almond prices have climbed sharply as the drought in the US constrained production there, and mature almond orchards produced by Select in recent years have produced excellent crops...'

'It is trading at around 10 times consensus forecast fiscal 2014 earnings per share of 58c at the current price...'

'Select Harvest has enjoyed a spectacular run and serves as a timely reminder that, while keeping an eye on the sky, Australia's listed agribusiness sector is much more than Graincorp and Warrnambool Cheese and Butter.'


The impression I get is that Select is only just starting to attract the attention of mainstream investors, and my feeling was that this extra publicity was largely responsible for the spike in volume over the past couple of days.