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S&W Seed Company (SANW)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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3.8500-0.1000 (-2.53%)
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  • s
    soccertese2006
    sanw was smart enough to be the high bidder for chromatin, "S&W Seed Company (Nasdaq: SANW) announced today that it has acquired certain assets and assigned contracts of Chromatin, a U.S.-based sorghum operator which entered into receivership earlier this year. The purchase price was $26.5 million.

    “We are excited about this announcement and the opportunity it provides S&W to significantly expand our presence in the sorghum industry and evolve into an elite middle market agricultural company,” said Mark Wong, CEO of S&W Seed Company. “Chromatin originated as an agricultural biotech company that had transitioned to an integrated global sorghum seed company. We believe the sorghum hybrids that have been developed to date are some of the best in the industry, with a development pipeline of products that include key traits that are anticipated to be first to market. In addition to a strong product portfolio, they have established a distribution network of sales representatives, 500+ farmer-dealers, and channel partners that we believe will allow for significant cross selling synergies with our existing alfalfa sales organization. This is precisely the type of opportunity the management team and board has been seeking to accelerate our go forward strategic plan.” lets hope they've been equally smart in their other acquisitions and business decisions. ceo has a lot of experience in ag.
    Bullish
  • B
    Bellstreetboy
    More great sorghum news

    CROP PRODUCTION
    New Crop Sorghum Surpasses $5 as U.S. Weekly Sorghum Exports Shatter Records

    sorghum-field
    sorghum-field
    By TYNE MORGAN April 16, 2021
    As U.S. farmers finalize 2021 planting plans, sorghum is still vying for acres. U.S. sorghum growers are enjoying not only a strong basis, but new crop prices above $5 as the hunger for U.S. sorghum hasn’t waned.
    Just this week, USDA confirmed U.S. sorghum shattered records last week, with a total of 33.9 million bushels of purchases. Driven by the top buyer of China, the total smashed the previous record set in August 2020 by 10 million bushels.
    “U.S. sorghum exports continue to signal very strong demand for our crop, and new purchases at this level only reaffirm that,” says Tim Lust, CEO of the National Sorghum Producers (NSP). “The size of shipments reported this last week is equivalent to the size of approximately 10 to 12 Panamax vessels.”

    NSP says China’s buying hasn’t just been on old crop, but strong new crop sales are a new turn of events for sorghum producers. NSP says new crop purchases of U.S. sorghum for this point in the marketing year are also at a record level, reaching 40 million bushels this past week. That’s a 264% increase from the previous record set in 2014.
    "I think on the High Plains, what we're seeing is a bid for acreage," says Wayne Cleveland, executive director to the Texas Sorghum Association. "We have some folks anywhere between $1 to $2 over the futures, which is really kind of unheard of on the Plains. It's buying acres. Talking to our growers kind of the irony of what's going on in the valley, which the bid yesterday in the valley was $1.30 over. But the irony is that's new crop. There's no old crop left, I think last week sales report, we saw that China basically bought ever kernel of grain sorghum that was left out there at 26 million bushels. So all crop is over with in Texas, everybody's clearly focused on the new crop."
    “This is the strongest new crop demand we have ever seen at this time in the season,” says Lust. “Availability is so scarce that the sorghum crop being planted now is being marketed at the same time, and farmers have not even started planting in Kansas yet. This sends a strong demand signal to U.S. sorghum producers from our international customers, and we look forward to getting the 2021 crop in the ground.”

    acres
    The 2021 acreage debate is far from over, and last-minute acreage decisions are possible. USDA showed in its March Prospective Plantings report that U.S. farmers intend to plant 6.9 million acres of sorghum in 2021, which is more than 1 million acres above the 2020 total.
  • B
    Bellstreetboy
    Top of the graph was cut off. Chart is from the USDA showing weekly exports of sorghum. The pace this year is phenomenal
  • M
    Michael
    Up in pre-market this morning. Any news? Price buying more stock, Jane?
  • J
    Jane
    Price keeps buying SANW and TPHS.
  • t
    thylakoid
    $AEHR conversation
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    Bullish
  • M
    Michael
    Grains up again today:)
  • M
    Michael
    Yea!
    Bullish
  • M
    Michael
    Yea! Again!
    Bullish
  • M
    Michael
    I'll saw it again. Dry on the plains (sorghum does well in dry weather) and commodity prices are high.
  • M
    Michael
    Commodities are up again today.
  • s
    soccertese2006
    they gave revenue guidance, will have to see what they say in cc. ceo gives a great cc. this is a very complicated company, going from 1 crop alfalfa to 6 and pay for increased r&d and sales efforts to create the kind of company the ceo wants, it's a long term investment, avg retail investor isn't going to put in the time and effort to understand this company. new 10k is out, bottom line, huge rewards if you can bring out a novel variety such as the new weed resistant sorghum but that's half the battle, you have to still grow the seed and deal with risks of just growing anything, convince farmers to buy it at premium prices which usually requires them to see it growing in the field first which covas has made more difficult and finally get paid on time. think it's going to be a bumpy ride with decent stock gains if ceo can keep all the balls in the air and/or they get a few super duper winners. they've laid out their plan, tough part is it's a really big expensive plan imho with taking on debt, lots of risk. not as risky as startup biotech but risky. was hoping they'd mention new acq and/or 3 and 5 year outlook ceo mentioned at lytham presentation. maybe we'll hear something at cc.
    Bullish
  • J
    Jane
    Harry Stine, of Stine Seed Company (privately held) , is Iowa's richest man - a billionaire. SANW may be an excellent, long term holding.
  • B
    Bellstreetboy
    Fairly upbeat conference call. CEO Wong and CFO Szot play it fairly close to the vest but are upfront when asked specific questions. Revenue would have been substantially higher but for two deals falling apart due to geopolitical/currency issues. Acquisition(s) are highly likely which should continue to follow the disciplined approach Wong/Szot have implemented. Chromatin integration ahead of schedule with better than expected results. Business is improving and stock should follow.
  • M
    Michael
    Listened to the conference call. Good. Mark raised the possibility of breaking even in 2022. Wish they would mention Stevia.
  • B
    Bellstreetboy
    The S-3 filed yesterday was part of the agreement between SW Seed and Michael Price. SW was required to register the shares for sale. Michael Price is not selling stock at these levels. The filing was a formality. His cost basis is substantially higher and IMO will be a shareholder for a very long time. You don’t become a multi billionaire by having an average cost in the high $3.00s and selling in the mid $2.00s. SW remains a buy!
  • J
    Jane
    Per Yahoo: Undervalued and good Performance Outlook for
    Short, Mid and Long Term. You don't find many like that.
  • J
    Jorge
  • B
    Bellstreetboy
    Excellent news on a number of fronts. Although I agreed with the acquisition strategy being laid out on prior calls, I couldn’t figure out how SANW was going to pay for them without more dilution. Today’s deal gives them the cash needed and it is apparent that these deal(s) will take place in the near term. Just as important is the clarity on the Pioneer/Corteva contract and payments. Given the state of the agriculture business overall, good assets should be available at deep discounts. Probably something in the distribution area and maybe something in Australia.