GRO Looks Ready to Rise 66% Next Week, Read Immediately!
China stocks are EXPLODING! Today alone: CNYD is up 105%, CJJD is up 39%, VISN is up 18%, STV is up 11%, just to name a few. Agria (GRO) is the China stock that's the most undervalued, with the strongest chart/technicals, and biggest upside! GRO's #1 asset by far is its 50.22% stake in New Zealand's largest Agriculture Supply company PGG Wrightson (NZX: PGW), which is publicly traded on the NZX in New Zealand.
PGW is beginning to breakout big, rising in overseas trading last night to a new 7-week high of NZ$0.42. GRO's 80.81% owned Agria Asia subsidiary owns 379.1mm PGW shares. Agria Asia's PGW shares are now worth NZ$159.22mm or USD$132.07mm, and GRO's 80.81% ownership of Agria Asia is worth USD$106.73 million or $1.93 per share!
GRO also owns 100% of a China seeds business that grew revenues this past year by 98%. A fair valuation for GRO's China seeds business of 2X revenues, adds an additional $0.61 to GRO's share price, valuing GRO at $2.54. However, GRO also has a net debt position of $5.5 million or $0.10 per share, which reduces GRO's fair value to $2.44. With GRO currently trading for only $1.47, it's about to breakout big and rally 66% to $2.44!
GRO reached a new 52-week high on Monday of $1.77 before dipping to its current price of $1.47! Right now is the perfect entry point, GRO isn't getting any cheaper, and looks ready to explode to new 52-week highs once again next week. We own 550,000 shares of GRO and don't intend to sell until after GRO rises to substantially higher share prices.