Prime Ag the real story.... Its all there in stock traders commentary! My thoughts are in contrast. I understand the bull case for agricultural commodities and I have some sympathy for it. But agriculture has historically been a tough way to make money, and backing corporate farmers a particularly efficient way to lose it. While commodities like wheat and cotton have traded at or near record prices earlier this year, listed opportunities like Prime Agriculture and Tandou have undertaken shareholder-wealth destroying capital raisings, and their shares have been rightfully punished. Calling for higher agricultural prices is one thing, finding companies that can use those higher prices to generate real wealth for shareholders, rather than expanding their corporate domain, is another matter. Few agricultural companies have great management, and fewer still a genuine moat. It’s a very tough business and weve generally shied away from it. There are no agricultural companies we’re particularly interested in at the moment. Gareth Brown
Posted on: Thu, 22 Jan 2015 09:06:14 +0000