Australian Agricultural Stocks

continued

First of all, let us start by having a look how the shares from our previous page have performed;

Nufarm Limited (NUF)

This stock has now broken out again and continued the uptrend. It has reached a 52 week high a few days ago and could well be bound for further heights.

ABB Grain Limited (ABB)

This stock has moved from $9 to $9.8, what more could we ask for?

GrainCorp Limited (GNC)

GNC is still moving in the same channel, although it has edged slightly higher. I am waiting for it to reach the top of the channel.

AWB Limited

AWB is up to 3.20 now, what more can I say? It has broken out of consolidation and may well commence in a stage 2 uptrend.

Australian Agricultural Company Limited (AAC)

AAC has entered the 2sd channel again and, in my opinion, will move up close to the top of the channel.

So overall, I am happy with the stocks selected on the previous Page, let us see what we can do this time.
I believe more so now than ever that listed agri-business stocks will outperform the general market. Longer term, the outlook for these stocks is very positive. Why am I saying that?

It seems that the drought in Australia has eased, rural confidence has been boosted and commodity prices worldwide are rising rapidly. Over the last few months, we had a very volatile share market, but the agri stocks have been fairly steady.
Let us look at some fertiliser stocks for a start.

Incitec Pivot Limited (IPL)

Incitec Pivot Limited is Australia's largest supplier of fertilizers. IPL is involved in the manufacture, distribution and sale of fertilisers with manufacturing facilities in Qld, Vic and NSW and distribution networks nationally.

Incitec Pivot supports farmers in all of eastern Australia's major agricultural industries, from tropical fruit growers in North Queensland to dairy farmers in Tasmania and grain growers in South Australia.

They supply a range of fertilisers specifically tailored for Australian farming conditions. New and innovative fertilisers continue to be developed to better match farmers' operational and agronomic requirements.

No wonder that this stock is doing so well. The share price has increased from about $81 in late November 2008 to a 52 week high of $177 now. Not much sense in putting a chart here, who knows where it will end up.

Minemakers (MAK)

Minemakers believes the world markets may be on the cusp of an emerging mineral price Super cycle and has strategically positioned itself for future price rises in a number of commodities including tungsten, tin, magnetite, fluorite, phosphate and halite (rock salt).

The Company has acquired a suite of large scale Australian projects across a range of commodities. Most have significant resource bases, some of world class status and most having significant past expenditure (several million dollars) already undertaken on them, allowing for increased potential for entire production. Minemakers has further strong increases in rock phosphate.

We are particularly interested in phosphate, fluorite and rock salt.
Minemakers is even more astonishing than IPL, having risen from about 35 cents in January 2008 to a high of about $2.95 a few days ago. Has anybody been on for the ride?

Reward Minerals Ltd (RWD)

Reward Minerals Ltd, (formerly Asia Multi-Foods and Oils Limited) is a minerals exploration company. The current activity of RWD concentrates on its potash prospects, in particular the Lake Disappointment prospect in Western Australia. As we know, potash is important to the agricultural industry.

Once again, we could have bought RWD at about 60 cents when it crossed the 10 week MA in the middle of February 2008. It is now at $1.80.

Makes you sick having missed out on some of them, does it not?

Tassal Group (TGR)

Let us have a look at one other company, Tassal Group. This may well be one stock that we should put on our watch list and perhaps it will give us good potential.

TGR is involved in the production, marketing and distribution of Atlantic Salmon in Australia. TGR also exports to the Japanese market. It is the largest producer and marketer for fresh and salmon portions in Australia and the largest supplier of Atlantic salmon to supermarket chains Woolworth's and Coles.

TGR was in a steady uptrend until about December 2007, when it started to form a double top. It then retraced sharply until March. It is now climbing slowly again, having crossed the 20 day EMA. I suggest it could be the beginning of a new stage 2, however I would like to see is rise above the 150 day EMA before I have confidence in going long. But it is certainly an entrant for my watch list.

That concludes the agricutural postings for the time being.