Ag Growth International Inc (AFN.TO)

Earnings are inconsistent from quarter to quarter, but they have tremendous growth ahead, like building a plant in Brazil. They do grain storage and transportation for individual and industrial farms. Likes them long term say five years, but they can miss their next given quarter.

They do grain augers and conveyors belts and storage bins. Storage gives farmers more flexibility. Most countries in the world are underinvested in storage. Many growth opportunities for this company. Yield of 4.3%. (Analysts’ price target is $67.17)

Grain handling and grain storage facilities. Grain storage is a big problem for countries like Brazil and China. If you have good storage facilities, you can wait for better prices before you sell the grain. This company doesn't profit from the prices of grains, but they benefit from the volume. (Analysts' price target is $65.)

Grain handling and grain storage. Agriculture is a growing sector globally. Better storage and handling facilities lengthen the shelf life of grains, allowing farmers to get better prices. The chart shows a very nice continuation pattern, and the prevailing trend is up. The stock is driven more by volume than the price of grains. Dividend yield of 4.5%. (Analysts' price target is $63.50.)

This used to sell augers to farmers, and now it has broadened its business into infrastructure. It sells silos, drying facilities, etc. On top of cyclical businesses which is selling into the farmers, it is now an infrastructure business growing globally. Dividend yield of 4.7%. (Analysts' price target is $66.)

Headquartered in Winnipeg. They are into grain storage. They are in the US, Ukraine and Canada. It will continue to grow. He would hold on to it. They will continue to grow around the world.

We have a ceiling on the stock here. The company has a fair bit of debt. They made several acquisitions.

This has a new CEO, who is an acquisitions expert. He thinks this stock is getting to the point where you have to ask, how much money can they make from these things. They are now going into fertilizer storage. He thinks $60 will be a good price for the stock. Doesn’t think they are covering the dividend, so be careful. It is a competitive business. A risky business for low returns.

A great company. One of the few ways of playing the agricultural sector in a sort of safer non-commoditized way. They make grain and fertilizer handling and storage equipment. Growing internationally. Very well-managed. The stock is down because they did a fairly large equity financing at around $54-$55 in the last few months. However, results have been very, very good. It gives you international exposure to needy infrastructure space overseas. A good entry point.

Agricultural stocks in general tend to do well during the summer and tend to run up through to the end of the year. This one had a phenomenal run all the way from mid-$30 to the mid-$50. Quite a good stock to hold during that time. Right now, we are seeing it shows signs of weakness. Momentum indicators are trending lower. This has been flat since December when the period of seasonal strength ended for agricultural stocks. If it breaks through, very short term support at $50.50, you will see significant downside potential of about $6.

Just made a very accretive acquisition, which he thinks is going to give them EPS growth of about 40% annually for the next couple of years. The payout ratio is looking sustainable at 67% for 2017. Debt to EBITDA is a little elevated, but he sees that coming down. However, it is trading pretty high compared to its historical averages. He would play this by writing puts. Dividend yield of 4.93%.

Not for the faint of heart. It is very whippy, but is a good quality name. It may have gotten a little ahead of itself, so he wouldn’t be jumping in right now. Not sure if there are options on this, but he would be Selling Puts to gain entry at $53-$54.

Had a nice little move in the last while. Fundamentally it ranks quite strong. Last quarter had good numbers. From a technical standpoint he wouldn’t be selling this. It looks like there is still a fair amount of growth, both organically and from acquisitions. Organic growth will come from it being a good crop year in the US, and the delay of buying equipment that has happened over the last 12 months. Farmers are expected to be buying replacement parts and equipment.

Makes agricultural products for the storage of grains, etc. Feels commodity prices have bottomed and it looks like corn and other prices are heading up. The most recent earnings were up 25% year-over-year as of August. Earnings are expected to grow by 52% to $.86 when they report in November. 26% earnings increase expected for 2017 against a 16 PE.

It is a comparable to DE-N. It has a nice chart, nice dividend and nice growth. It is more of a growth play than DE-N, which is more of a value play.