Agriterra Ld Share Discussion Threads

[n3tleylucas] 26/2/2014 07:58

Cash dwindling fast, still no profits. Do these guys understand the idea of business?

[flashheart] 26/2/2014 07:53

They do and there will become a point in the not too distant future when investors start to think ...hey! we're very close to turning a profit here which will be substantially increasing year on year very handsomely. The re-rate will not be far off imo.

[opaldouglas] 26/2/2014 07:49

On first inspection interims read very well.

[jimmy12345] 26/2/2014 00:36

been here for nearly two years, could have sold over 5p. bought at 3.1p. i aint going anywhere

[opaldouglas] 25/2/2014 18:18

I'm also sitting patiently.

I expect we'll see good progress on all fronts, especially beef and cocoa divisions.

OD

[thomcooper] 25/2/2014 17:51

*grab some more...

[thomcooper] 25/2/2014 17:51

I'm not really. It's nice to know that shareholders are loved! I'm not expecting fantastic results here. If they do come out good then it will be nice. I think I'm in early on this, so a dip will provide an opportunity to grab some at a lower price.

[thomcooper] 25/2/2014 16:56

I'm sitting. You'd have thought they'd have got something out by now.Doesn't inspire much confidence. Interesting article about Arabian food resources in last weekends economist.

[swooped] 25/2/2014 16:17

Am I the last man standing here?

[swooped] 20/2/2014 08:26

half yearly results by 28 February, this being a Friday then I expect (assuming they are ok to good) then we may get them on Monday

[jimmy12345] 19/2/2014 22:31

Sliding on no information. Last time we heard a peep was way back in november. Until we get something the market is getting nervous

[thomcooper] 19/2/2014 12:28

If it went there then I'd be selling the house to buy stock!!! The cash in the bank is worth more than 1p alone valuing the business at 0.

But, thats exactly what the scenario is with Asian Citrus at the moment though, so its not an impossibility.

[the count of monte_cristo] 19/2/2014 11:53

If this breaks below 2p it could go down to the prevous summers low. Imho.

[thomcooper] 18/2/2014 10:55

Yeah. I've not looked into Graphene too much, other than what he's said & a program on BBC World Service back in November.

Mason Graphite, G* Nanochem & Applied G* are a bit too speculative for me at the moment. If they're not quite making a profit, I'd at least like them to have some NAV. Even if you end up paying double in a few years when they're actually producing something. They're on my radar to hop in when the times right though. I'd have been in Applied Graphene at the IPO if I was aware of them back then.

Don't know enough about Graphene to work out how positive first mover advantage is going to be or whether they'll need a heap load more cash to make industrial levels of the stuff.

Aside from this, anyone know how to get exposure to Botswana without opening an account with there - aside from buying the big miners? Was hoping IG would have Wilderness on their South Africa board.

[the count of monte_cristo] 18/2/2014 09:34

Jim Rogers is the man, also worth following his lead into getting exposure to Graphene imho.

[thomcooper] 18/2/2014 09:27

Count - Totally agree. Still a bit nervous about Sierra Leone politically. I don't think they should place too many eggs over there. But if all goes well theres plenty of potential there too.

I'm following Jim Rogers on Agri. My own research backs up what he's saying & he makes as much money in an hour as I make in a decade, so I don't doubt him.

[the count of monte_cristo] 18/2/2014 08:12

Thom - well the company has stated they DO intend to start selling into the Arabian markets, where they should be able to command premium prices. Agreed about China, as well as India, combined something like 2.5 billion mouths to feed.

Cocoa is now close to 3,000 US$ a tonne.

They had onion riots in India last year, armed gangs were holding up trucks to steal the onions, the price of red onions increased 300% in a few weeks due to a bad crop and short supply in the onions which was also exascerbated by people hoarding there supplies, as people do in such times. Just one example of the potential calamities which await the world food system in the coming decade. People will over throw governments in countries if they cannot buy bread or the price increases significantly...

[cyfran101] 18/2/2014 01:18

Interims should be coming soon

[thomcooper] 17/2/2014 22:19

The Saudi's will do fine! China has a lot of mouths to feed. Therefore, I think they'll be buying from the moon & everywhere in between in the next 10 years or so. Even if they don't buy from Agriterra, the price of beef is on the ski lift IMO.

[the count of monte_cristo] 17/2/2014 10:43

thomcooper - I believe the intention is to start exporting the beef to the saudi and arabian market where it will command premium prices, I doubt any of it will go to China. The Aussies supply beef to china, if you want exposure to that.

[jimmy12345] 17/2/2014 10:01

Share price has been drifting for some time now. And we are in dire need of an update. Its nearly 3 months since we heard anything from the company

[thomcooper] 16/2/2014 21:03

My main reason for buying is the NTAV vs. historic losses. I can't see the losses rising too much higher as I believe that a lot of the losses are due to expansion & running facilities way under capacity.

I believe that China will provide huge export demand over the coming 5 years for countries such as Moz, Zambia, Botswana, etc as they let the RMB appreciate & their citizens get more purchasing power. This is the upside.

The downside is that they slowly burn away at the pennies in the pot. In which case, the market has plenty of time to get excited about emerging markets & push up the stock or get out with a smallish loss.

I don't see Mozambique politics getting in the way any time soon. Theres probably more risk of Ed Milliband nationalising N-Power & British Gas IMO.

Not sure if it will jump for a few years, but its a keeper for when it does.

There was a concert where a load of idiots held a concert to raise money for Africans. Their intention was good, but them like many NGO's before them haven't solved the problem.

I believe that the only way for things to work is for them to have an opportunity to earn a living through hard work, not handouts.

Lenders should earn a market rate of return on their capital, & companies such as Agriterra should make market value return. On the same hand both should not fleece them.

But where you have subsidised purchasing or lending, an artificial market is created that can only end in tears when the support is removed.

If companies like Agriterra offer a stable fair marketplace offering market rates, where farmers reinvest their profits to purchase machinery, etc rather than receiving cheques off a charity, then they will be infinitely better off over the long term.

At the same time, Agriterras shareholders (such as ourselves) are receiving a return on our capital. We'd never offer this capital to them as a donation (I personally would be a bit strapped for cash if I gave away the value of some of my investments), but this way larger scale investment makes its way into these regions instead of into something like Twitter, General Motors, etc.

At the same time, if I make money from such companies, I'm going to reinvest them - possibly into similar projects. One day, the poor farmers will have enough money to invest in Agriterra shares themselves & gain not only from the produce of their crop, but also from the distribution of it too.

This is to the long term advantage of Africa as it raises people out of poverty, but not to the long term detriment of the capital diverted from investments in the West, as over time the global marketplace for products such as cars & social media increases.

When NGO's provide money to buy machinery, the farmers haven't built up the productivity to purchase that machinery in the first place. When that machinery breaks, they either cannot afford to maintain or replace it (as their productivity advances would have probably not been large enough to provide sufficient capital), unless they receive another grant. This is no different to subsidies or benefits payments in my view, which I believe hinder rather than help over the long term.

Alternatively, if they are offered a market rate loan to buy machinery - they will buy machinery that they can afford. Over time, the best farmers will build this up so they're buying John Deere's finest.

Of course, government corruption & cronyism is the biggest barrier in Africa.

[the count of monte_cristo] 16/2/2014 11:32

Just reading a book about cocoa in ghana & ivory coast, one of the main issues for the farmers is getting there product to marke5 and gett8ng a fair price...if agta enable farmers to acheive this in sierra leone they are providing an invaluable service. Difficult for a farmer to get your product to marke5 if you have no van or car...

[multibagger] 16/2/2014 06:44

Hi thomcooper....welcome aboard !

O/T:

It appears that philanthropy is part of your values, as it is in mine. Recently read a book "Aid on the edge of chaos " by Ben Ramalingam...interesting read and insights in addressing the issues of global poverty....