This is just my opinion but the downgrade by brokers which has ranged from under $2 to $3.50 is a reflection of management rather than numbers which are highly cyclical. On the call there were a few questions asked about structural issues and Greg indicated that the financials had more to do with medium terms events. Usually valuations have a look through component I.e blended EV/ebitda to remove noise or LT NPV/dcf to account for future years earnings rather than focusing on eps for one yr. Given the huge shift in valuations including from the mkt in real time, I can only assume that the mkt believes that earnings will not recover in the short to medium term. This means a sustained bounce is unlikely.
I mentioned this in a previous post, but the seeds division was supposed to be the growth engine as crop protection is a crowded/competitive mkt. Let's not forget the other divisions which were also sold off in prior yrs. If seeds gets sold then they will be left with an uninspiring business division that's low growth. The activist SHs on the register need to step up now or this will be a slow death. Greg also needs to go and they need someone with vision even if that means a capital raise to properly fund seeds. All of this is weighing on the stk.
NUF Price at posting:
$2.63 Sentiment: Sell Disclosure: Held
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