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Agria Corporation Message Board

  • Edgoat Edgoat Aug 20, 1999 4:22 PM Flag

    Is this a good company to invest in now

    What do you think are the prospects for this company? Will its markets improve? How does the farm crisis affect it? The stock is at 8 and I am tempted to buy in.

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    • I agree there is more than ratios. But these are
      commodity products, so its pretty easy to compare one
      fertilizer manufacturer to another. Costs of production
      would show up in any ratio that compares earnings,
      since lower costs would equal higher earnings all else
      being equal. Higher market share would also lead to
      higher profits which would impact a ratio. A nice
      culture unfortunately doesn't make a company more
      profitable or valuable, unless profits are higher as a
      result, but that doesn't seem to be the case. I'm sure
      management is doing the best they can, but on a relative
      value basis all I'm saying is GRO seems expensive
      compared to others how have gotten hit more.

    • The difficulty I have with JDOG's assesment is
      that the value of any organization is more than the
      sum of a few ratios. Ratios ignore things like Market
      Share, quality of products and service, costs of
      production and org. culture relative to others in the
      industry segment (and its debatable that the orgs. in the
      segment are valid for comparison). This entire industry
      is DEPRESSED! Perhaps instead of criticizing GRO and
      others, we should applaud Mgt. for their ability to
      weather the storm as well as they have.

    • This company is trading at about 12 times
      expected 1999 cashflow of $40 million (ratio of total
      enterprise value including debt to earnings before interest,
      taxed, depreciation), while its competitors are trading
      at 5-7 times cash flow. If it were to trade at 7
      times, the equity is worth zero. Seems like unless the
      nitrogen or DAP markets turn around real quick, this
      stock's headed down. That doesn't seem likely given
      capacity expansions happening internationally. Anyone

    • Any thoughts on GRO and if they would consider a
      merger/sale? My feeling is management needs to enhance
      shareholder value, not deplete it! Mr. Dunn, ask yourself
      what is in the best interest for the owners of this

    • Who just bought up 323,400 shares of GRO?

    • What is your basis for this price.

    • Price will settle around 6.50.

    • I'd recommend investing in GRO because it's an
      easy investment to understand. It's a strong player in
      an otherwise very soft ag-market. The management
      seems conservative and they have a track record of
      making wise growth decisions. The stock may be at 8, but
      then take a look at other corp.s in their sector.

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