I am thinking suppression by the big boys. There is love out...

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Nightmarez3k

4,987 Posts.

139

28/06/16

23:20

Post #: 18146107
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Originally posted by Horsetrader1 ↑

Agree - TGR should get some love. The following are my thoughts on why Aussie Agriculture stocks (in general) are not going rising substantially.
1. Small market cap - TGR is the biggest in Aquaculture and yet it is less than $600m - it would not register on most analyst to t/o radars.
2. MIS - So many aussies got burnt on MIS, that they have stayed right away fro the sector due to the risks. I know TGR is not a MIS - but it is in Agriculture, so potentially is "tarred with the same brush".
3. Environmental Risk - Aust is a very risky place for any Agricultural stock. Weather events affect both cash flow and profitability. Income is variable and so valuing a stock is very difficult and the risk factor in any valuation could be quite large.
4. Sovereign Risk - While ever you have the Greens conducting inquiries into the industry, wanting more regulation and the fact that they have been in government in Tasmania, for a foreign investor, is an unknown factor that needs to be factored into the price you are willing to pay.

While I have mixed up both t/o and Aust investors - I think that the above would provide some reasons why the sp has been struggling to climb and hold the price increase.

HT1

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I am thinking suppression by the big boys.

There is love out there however instos are accumulating on the quiet.

Everyone probably knows there will be 1-2 years of high prices.

This H2 result may force the hand of accumulators to pay up.

I suspect come financisl year 2016/2017. TGR will be a market darling unless the greens takeover.

However TGR are better farmers than HUO.

TGR Price at posting: $3.95 Sentiment: Buy Disclosure: Held
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0 Great analysis

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Add TGR (ASX) to my watchlist

I am thinking suppression by the big boys. There is love out...

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