My thesis in Ag Growth International (TSX: AFN) was written in a very condensed form back in “we are all going to die of COVID” April, which seems like an eternity ago.
After reviewing AFN’s quarterly report, business is even better than I was thinking post-COVID. The stock price is now a closer reflection to where it will be going, i.e. still higher.
In fact, if I didn’t already have as high a position in this stock as I did (I took a fairly large position in early April and that has ballooned due to appreciation), I would be buying more.
Nearly nobody in retail-land follows this stock – the lack of commentary on places like Seeking Alpha or Stockhouse is comforting. I don’t see people on Robinhood flipping this stock around. Even after reporting what is unarguably a good quarterly report, the stock only traded a shade under 200k shares.
There are some related companies with somewhat less in the way of competitive advantages that are trading relatively cheaply as well, but business-wise AFN is in the sweet spot. I managed to get shares of one of these other related companies, but it was a ridiculously small position before their stock took off as well.
Hi Sacha….whatsup with AFN…I dont see any significant news……is this a buy the dip moment?
Other than management saying to brace for higher steel prices in Q2-Q3, nothing on my end. The shares aren’t hugely traded. If a fund wants to get out of a 200k share position in a week they’ll be taking the price down a few bucks.
Thanks Sacha