Agriculture ETF Up 16 Straight Days!!! Unbelievably INSANE!
The agricultural commodity ETF DBA is up today for the 16th straight trading day and agriculture stocks are about to skyrocket! Look for Agria (GRO) to make the largest gains on Wall Street between now and Friday, from its current price of $1.59! GRO is the parent company of PGG Wrightson (NZX: PGW), the largest agriculture company in New Zealand, and PGW last Tuesday reported its fiscal 2014 first half results with year-over-year cash flow from operations growth of 514%, net income growth of 178%, operating income growth of 95%, EBITDA growth of 69%, operating EBITDA growth of 24%, and revenue growth of 8% - due to New Zealand's booming agricultural sector, which has made New Zealand the world's fastest growing advanced/developed economy - with projected 2014 GDP growth of 4.2%!
GRO itself will report its fiscal 2014 first half results Thursday morning and will be hosting a conference call where they are likely to give an extremely bullish outlook! PGW accounts for 98% of GRO's revenues so it's a 100% sure thing that GRO will report HUGE year-over-year growth! PGW was only projected to grow revenues by 3% this year, but after reporting fiscal 2014 first half revenue growth of 8% last Tuesday, two analysts just raised their full year revenue forecasts and now project PGW's full year 2014 revenues to grow by 11%! They now expect PGW's second half revenues to grow by over 14%, nearly 5X higher than previously estimated!
PGW closed last night at a new 52-week high of $0.45! The current market value of GRO's stake in the company is now $2.08 per share or 31% above GRO's current share price of $1.59! Look for GRO to rise above $2 on Thursday!
PGW's book value is now $0.34 and at $0.45 it's trading for 1.32X book. GRO at $1.59 is trading just 1 penny above its $1.58 book value! As the parent company of PGW it deserves the same price/book ratio, which would value GRO at $2.09 per share! We so far bought 460,000 shares of GRO and intend to sell at prices above $2!