Agilyx Ord Shs AGXXF

Up 7.01% today - quite the bump!

[Matlock]

Any insight from posters on what happened today?  I'm not aware of any news....

[snewguy]

my take is stronger prices = higher demand = stellar Q2 = higher share price anticipated...

[Matlock]

Not quite.... the high prices aren't demand driven, they're due to a shortage of pulse crops due to poor growing conditions in 2014. Lucentio may/may not be on to it.... if AGT already has already locked in contracts with their growers at lower prices, then there's profit to be had.  Although if the 2015 harvest ends up being poor also, this will eventually catch up with them

[snewguy]

how do you geta  shortage without strong demand? lol...   point was, AGT is going full out and the street recognizes that on future earnings... if you say its all from lack of supply are you saying that global demand is constant or shrinking? whats the purpose of their growth plans and the Minot expansion?   expectations are 20% growth to bottom line by 2017..

[Matlock]

How do you get a shortage without strong demand!?  Um, welcome to farming.  Poor growing conditions reduce yields, whether that be drought or excess moisture.  The Financial Post article stated Saskatchewan pulse yields were down 15%.... which reduces the supply of product AGT is trying to buy to turn into ingredients to sell. Growing crops isn't like a widget factory where you

[snewguy]

so are you saying the growth plans and Minot expansion is just to handle stagnant demand?  are these guys the only processors? u r right, I am not a farmer, but I believe the poor crop season just accelerates the price increase in a global market where demand is growing anyway...   i could be wrong, but in a world where population is growing, i don't believe demand is stagnant...

[Matlock]

I'm not saying the long term demand picture isn't positive, I believe it absolutely is.  That's why I'm invested in this company. What I am saying is nothing changed in that demand picture over one day from last Thursday to last Friday such that the stock suddenly jumped 7% in one day.  Which is the question I started this thread with.

[snewguy]

what changed was the street analysts recognized that stronger demand, shorter supply and already strong prices lead to a strong future at least in the short term...   at avg earnings call for 2.15+ next year and at same multiple, thats 40+ on sp....  on valuation, easy to start the herd buying.... this years estimate is 35ish, so pretty big gap from 28... given very high confidence in

[Lucentio]

Article in Barrons about Ingredion spurred buying in AGT See  Yahoo   Msg Board, I  can't seem to copy and paste it into SH

[snewguy]

probably more weight on the fp article and 2 guys on BNN as canadian sources....  regardless still see rsi at 65 and MAs a couple bucks lower... so.....