As money comes out of overvalued tech stocks it will move into real assets like gold, silver, and especially agriculture. Several major economists predicted this week that 2014's Rock Star economy will be New Zealand, with New Zealand's GDP expected to be the fastest growing out of all developed nations and the New Zealand Dollar expected to be the best performing out of all major currencies - due to its booming agricultural sector.
Agria (GRO) is the biggest undiscovered gem and most undervalued stock on the NYSE, currently just $1.45 with a market cap of $80.3 million, GRO's 80.81% owned Agria Asia subsidiary owns a 50.22% controlling stake in New Zealand's largest agricultural services company PGG Wrightson (NZX: PGW). GRO is currently generating 98% of their revenues from PGW, and PGW is expected to grow their EPS by 100% in fiscal 2014! PGW itself is publicly traded overseas on the NZX under symbol PGW. Last night, PGW closed at a 7-week high of NZ$0.42 and today the NZD/USD exchange rate soared to 0.837.
GRO only has 55.38 million shares outstanding and the current value of their PGW stake is $107.69 million or $1.94 per share, up 34% from its current share price of $1.45. The market is currently valuing GRO at an artificially low share price that won't last for long. GRO will explode to $1.94 any day now. We own 550,000 shares of GRO but don't intend to sell until GRO is trading at substantially higher share prices.