HUGE Buyback Approved, 98% Revenue Growth, Could Gain 44% Any Day Now!
Agria (GRO)'s wholly owned China seeds subsidiary grew revenues in fiscal 2013 by 98% to USD$17 million, yet it's currently being valued at LESS THAN ZERO. If GRO sold their shares of PGG Wrightson (PGW.NZ) at PGW's current NZX market price of NZ$0.41 per share, GRO would have approximately USD$171.45 million in cash and USD$75 million in debt, for a net cash position of USD$96.45 million. With 55.38 million shares outstanding, GRO would have a net cash position of $1.74 per share!
GRO needs to rise above $1.74 for its China seeds business to be receiving any value at all. With 98% revenue growth, GRO's China seeds business on an extremely conservative basis is worth at least 1X sales or $17 million, which means GRO could rise any day now by 44% to $2.05 per share. GRO has approved a $10 million share buyback and at any time now GRO could begin buying back as many as 7 million shares in the open market, which would reduce GRO's float by about 1/3. We have already accumulated 550,000 shares of GRO and don't intend to sell until it reaches much higher prices.