AGU is in a significant overbought condition right now and is trading at the very top of its established price channel. The potential risk of a significant pull back is greater than the reward of continuous upward movement. I am waiting on the overbought condition to disipate before I get back in. I like the odds better than buying in at the top of the channel. Just one successful traders idea....do as you please.
That is not always telling. When you see Williams%R and RSI confirming a fall below 80 on the Slow Stochastics with a declining A/D line and downtrending ADX on increasing volume, then the overbought condition may be dissipating(notice spelling). JMHO
AGU is undervalued here. AGU could see rapid upward movement from here. The 2.80 - 3.00 profit for the quarter did not even include UAP's projected profits which AGU recently bought. UAP has 700 plus retail farm supply stores. This quarter should be gangbuster for them as well. AGU is up from here!!
if you would do a little research you would get your answers. Check out their site by going to the profile page of yahoo. Think about crop prices and what will be the future demand. Food shortages around the world. Quit asking if this is the top and do some analysis and thinking on your own. A forward PE of 11 and a PEG of 1 are excellent #'s. If you don't know what these #'s mean go here http://www.investopedia.com/terms/p/pegratio.aspI own AGU and will be adding to my position this next week where I will have a full position. Also own ANR, MEE and MOS.
i would get in now. the floods will keep corn prices high as inventory is drawn down from the crop damage. next year corn prices should be high as a result.
AGU should do around $7.50 earnings for the year. if you lowball the P/E to 18, you would get around $135.still a 30% gain. it will probably take a year to hit that number. a 20 multiple will get you $150. i would expect AGU to be somewhere in that range.