Agriculture & Fertilizer Stocks

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AG Stock Trades

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Sunday, January 6, 2008

List of Good AG stocks

MOS, POT, MON, CF, BG, DE, TRA, MOO, TNH, SEED
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1 comment:

jack said...

I just received this teaser email from Robert Hsu's Asia Edge $3000/yr stock service. Looks like he is talking about MOS as best stock for 2008. What do you think?

“It was the top stock of 2007.
It’ll surprise everyone by becoming

THE TOP STOCK OF 2008

--and best of all, it’s still cheap”





It was the top stock of last year, up 349%—much to the delight of Asia Edge subscribers.

Fourbaggers like this are rare but fourbaggers that keep up a blistering pace for more than a year are rare as diamonds.

“Listen to me this time!”


I first told you about this agriculture economy on June 29. If you had listened to me then, you’d be 150% richer today.

The good news is: it’s time to load up again. But you must complete your buying before earnings are announced on Wednesday, January 9.

Details here.

But here’s the thing. The stock is STILL cheap. Most investors have never heard of it, even though it’s a huge operation. It’s American, so it can’t be tossed around like a shuttlecock in the superheated Asian markets. And it is part of a massive, multi-year, possibly multi-decade shift—to more expensive food.

Will this stock match the 349% gain we saw in 2007?

No. It’ll do better.

Plus, if you buy it today, you’ll get in before a tsunami of institutional buying hits the stock, possibly forcing it out of reach.



Earnings are declared by this company on Wednesday, January 9, at 10:00 a.m. That doesn’t give us much time but time enough.

A Classic Supply/Demand
Squeeze

Presidential elections…subprime scandals…terror and mayhem in public streets…bubbles and brouhahas…nothing, no matter how awful or thrilling, that happens today matters because TOMORROW six billion people will wake up hungry.

Agflation:
The BIG Surprise of 2008

• We’re down to a 50 days’ stock pile of grain—a 26-year low.


• Asia now consumes 90% of the rice grown in the world. Stockpiles of rice are now below 70 days, the point at which markets become unstable.


• Floods in Australia have wiped out a big piece of the harvest there, and in Russia, the Ukraine and Egypt wheat harvests were poor.


• U.S. farmers delivered bumper crops this year, but so much of it has been diverted to biofuels, we’re seeing skyrocketing food prices here this winter.


• And all this at the very moment that 40% of the world’s population—almost 4 billion in Asia—is demanding a middle-class diet. Eggs, meat, protein in any form, all are being gobbled up by newly-affluent Asians.


• Enterprising farmers are hunting cheap farmland around the world. American farmers are in Bahia, Brazil, and Chinese farmers are in the Philippines.

Opportunity?
Oh yes!



And 2008 will be remembered as the year that food became expensive—and many went hungry. It’s arguably the worst crisis at this scale since the Mao famines of the late 1950’s.

You’ll feel the pinch, too. Everyone will. Eggs are up 38%, milk is up 30%. Even chocolate is up 6%. Add in the cost of gas and the falling value of homes and you might think twice about going out to eat.

In Asia, the effect is ten times greater. First, 100 million newly minted middle class in China yearn for steak and eggs, sodas sweetened with corn syrup, cream and butter.

Second, 3 billion more Asians struggle for staples—but grain (wheat especially, but also rice) prices have soared to 17-year highs. A calamitous Australian drought, poor harvests in Russia pile on the problem.

To top it all off, grain-derived ethanol has pushed up corn and soy bean prices to and undreamed-of levels this year.

Greener Pastures


And now, a quiet mid-Western company in the unglamorous business of raising crop yields is emerging as the hero of this story.

Mark my words: agribusiness is in the first year of a 10-year superspike. A cross section of agriculture stocks called the DXAG was up 66% in 2007, after being virtually asleep since 1980.

Look at our “Greener Pastures” company more closely and you’ll see more reasons this stock, up 349% last year, is only at the start of a huge run.

In January last year, the company announced a boring 15 cents a share earnings, dead in line with estimates


In April, it announces FIVE cents. Ouch.


Now, I could see a turnaround coming at the most fundamental level. I was in China, Singapore and Korea over this period and saw food prices being rewritten in market stalls, roadside restaurants and 5-star hotels almost daily.


Sure enough, July’s earnings popped from 5 cents to 41 cents—confounding Wall Street and making my Asia Edge subscribers deluge me with congratulatory emails.


Next comes a gobstopping 64 cents earnings report, and the stock went stratospheric: up 64%, 192%, 269%, 349%!
Breathtaking stuff—that’s ready to be followed, at 10:00 a.m. on Wednesday, January 9, with a 75 cent, perhaps even an 80 cents per share earnings report that could unleash another big run. Details here.

The Asia Edge Record
for Greener Pastures Stocks
In 2007

• Specialty Chemicals:

UP 349%
• Specialty Food:

UP 71%
• Basic Commodities:

UP 126%
• All China: UP 48%

For complete details on our next Greener Pastures stock…



No Bubble Here

Bubbles are one thing. Technology, housing, banking, gold—you name it, it’s been caught up in bubbles and bursts. But I don’t believe the phrase “crop yields” will ever be associated with the bubble-experience investors have had in other sectors.

Buy our Greener Pastures stock BEFORE earnings come out on Wednesday. A tsunami of institutional buying will hit the stock after the announcement, possibly forcing it out of reach. But rest assured: The 349% gain we saw last year was just a warm up. Details here.


Robert Hsu, Editor
Asia Edge

January 8, 2008 at 7:51 AM

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