SEED gained 45% on Friday or 53% including afterhours trading. GRO is the only other U.S. traded China seeds stock and looks ready to also skyrocket. Historically, GRO has always closely followed SEED. For example, GRO was trading for $1.77 on September 2, 2009, and rose 156% in less than three months to a high on November 23, 2009 of $4.53. During this same exact time period, SEED gained 154%. Most recently in October of 2013, both SEED and GRO skyrocketed at exactly the same time.
While SEED's China seed revenues have been flat year-after-year, GRO's China seed revenues grew in fiscal 2013 by 98%. SEED has net tangible assets of $1.31 per share vs. GRO's net tangible assets of $1.39 per share. With SEED trading at $1.94 on Friday afterhours, GRO belongs well over $2 per share.
Two HUGE extremely well respected investors recently took minority stakes in GRO's Agria Asia subsidiary. New Hope Group, China's largest agriculture company with $12.7 billion in revenues, invested $20 million into GRO for 11.95% of Agria Asia. Ngai Tahu, a New Zealand tribe with over $1 billion in assets, invested $12.44 million into GRO for 7.24% of Agria Asia. These two transactions value GRO's remaining 80.81% Agria Asia ownership at $135.25 million-$138.85 million. With 55.38mm shares outstanding, this equals a GRO share price of $2.44-$2.50 for its Agria Asia subsidiary alone
GRO started to breakout in the final hour of trading on Friday, rising 5.4% and surpassing a key resistance level. Look for GRO to make a move this week similar to the move SEED made on Friday. We have purchased 550,000 shares of GRO and don't intend to sell until it is trading at much higher prices.