NIA currently owns 249,800 shares of GRO that it intends to sell at much higher prices but reserves the right to sell at any time. NIA is not an investment advisor and is not making any target prices or financial projections. Never invest based on anything NIA says. Always do your own research and make your own investment decisions. NIA never recommends to buy or sell any stock.
This chart shows Agria (GRO)‘s share price (orange line) vs. the latest value of its PGG Wrightson (NZX: PGW) stake (light blue line). The dark green line shows how undervalued GRO currently is vs. its PGW stake valuation.
When GRO closed at $2.05 on March 5th, its PGW stake was worth $1.95 per share and GRO was trading at an extremely overbought level of $0.10 above its PGW stake valuation. Since then, GRO‘s PGW stake valuation has increased by $0.10 to $2.05 per share, but GRO has dipped to last week’s closing price of $1.30. GRO is now at an extremely oversold level of $0.75 below its PGW stake valuation. This is the most undervalued GRO has been since NIA’s suggestion!
GRO is now very profitable with revenues, EBITDA, and net income rapidly growing! GRO always returns to an average valuation of $0.44 per share below its PGW stake valuation, which is illustrated by the horizontal green line. This would currently value GRO at $1.61 per share. Another China agriculture stock Gulf Resources (GURE) is the #1 gainer in the market today and GRO‘s closest comparison Origin Agritech (SEED) is beginning to breakout big!