NIA’s agriculture stock suggestion Agria (GRO) is about to explode big time. GRO‘s PGG Wrightson (NZX: PGW) subsidiary reported blow out fiscal 2014 earnings last night! In February, following PGW‘s fiscal 2014 first half results, they issued fiscal 2014 full year EBITDA guidance of NZ$52-$56 million. In June, PGW raised its fiscal 2014 full year EBITDA guidance to $56-$58 million!
PGW last night reported fiscal 2014 full year EBITDA of $58.7 million – surpassing the high end of their raised guidance! PGW‘s fiscal 2014 EBITDA of $58.7 million was up an enormous 28.2% from fiscal 2013 EBITDA of $45.8 million!
After reporting fiscal 2013 EPS (excluding goodwill writedowns) of $0.0194, analysts were estimating that PGW would report fiscal 2014 EPS of $0.04 per share. PGW beat analyst estimates by 40%, reporting fiscal 2014 full year EPS of $0.056 up 189% on a year-over-year basis!
PGW also reported fiscal 2014 positive operating cash flow of $0.073 per share!
PGW‘s earnings and cash flow were so strong that all shareholders who own the stock on August 21st will receive a second half cash dividend of $0.035 per share! In the first half, PGW paid out a dividend of $0.02 per share! This means PGW‘s fiscal 2014 full year dividend is going to equal $0.055 per share, giving PGW a dividend yield of 12.8% – one of the world’s highest dividend yields!
PGW last night rallied $0.035 or 9% to $0.43 in overseas trading! Adjusted for its first half $0.02 per share cash dividend, PGW is now just 1/2 a penny short of its 52-week high of $0.435! When PGW rallied to $0.435 in March, GRO exploded to a high of $2.12 per share!
GRO will be reporting their fiscal 2014 full year results within the next month – and they will undoubtedly announce a record full year profitand an amazing year-over-year turnaround from last year’s loss! GRO is almost a 100% sure thing to make massive short-term gainsfrom its current levels!
NIA currently owns 344,800 shares of GRO. NIA intends to sell these shares and can sell them at any time. NIA also reserves the right to add to its position at any time. Past performance is not an indicator of future returns. 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.