Agria (GRO) is ready to EXPLODE this afternoon and tomorrow from its current dirt-cheap price of $1.45. Lamb/sheep has been one of the world's best performing agricultural commodities in recent months! Lamb prices finished December up 32% from one year ago! In just the final two months of 2013, lamb prices soared 8%, their largest two month gain in 4 1/2 years!
New Zealand is the world's largest exporter of lamb/sheep meat. PGG Wrightson (NZX: PGW) is the largest seller of lamb/sheep in New Zealand, and GRO owns a controlling stake in PGW! This makes GRO one of the most leveraged stocks to rising lamb/sheep prices! Recent HUGE lamb/sheep price gains aren't yet priced into GRO, but GRO's PGW is beginning to rally big - closing last night at an 11 month high of NZ$0.43!
PGW has 754.85 million shares outstanding and a market cap at NZ$0.43 of NZ$324.59 million. Based on the current NZD/USD exchange rate of 0.8322, PGW's market cap is equal to USD$270.12 million. GRO owns 80.81% of Agria Asia, which owns 50.22% of PGW, for an effective PGW interest of 40.583%. A market cap of $270.12 million X 0.40583 = $109.62 million divided by 55.38 million ADRs outstanding = a GRO share price of $1.98! GRO is about to rally a minimum of 37% from its current price of $1.45! We own 550,000 shares of GRO and don't intend to sell for anywhere near these current dirt-cheap prices.