Agria is at the beginning of a recory
Agrias wase a little bit short in cash, since the PGW partial takeover. But they were never short in cash because of big operation losses. On Page 47 you can read that Agria provide payments in advance to their seed farmers.
>>At the beginning of each growing season, we provide parent seeds to production companies to grow for us under contractual arrangements, which detail thearea of land, standard yield and quality requirements. We also provide advances to the production companies for their rental of land,payments to farmers, purchase of fertilizer and other production materials. At the end of the growing season, we take delivery of the
seeds and undertake various sorting, selecting, coating and packaging processes to produce our finished goods.<<
IMO that had brought a lot of cash back into Agrias pockets. Therefore i am very optimistic to see semi annual reporting from Agria in the next weeks,
that impress analysts and institutional investors. It is sad that nobody here in the PGW thread is optimistic for Agria, and that you ignore the potential that
the partnership will have for both of them.
If you compare Agria with Monsanto on a basis of shareholder Assets , Agria could be more than a ten bagger! I know that Agria has not the cash flow of Monsanto,
but that can change within the next weeks. I dare to say that on earnings/share basis Agria can easy arcive a P/E of 2.
The current improvement of Agrias share price is only the beginning. Some of you were impressed by the recovering of PGWs share price, but i predict
in a few weeks you are annoyed if you miss the chance to be a shareholder of Agria.
Edible Corn Seed Gross Marging in China is 47%