Balanced Portfolio - Switch 2% Graincorp to Nufram
Date: 09/04/2024
*** GENERAL AVICE ONLY***
Nufarm Limited (NUF) is a big company that works worldwide in making and selling products to protect crops and create new types of seeds. It started more than 100 years ago. The company is all about coming up with new ways to help plants grow better and stay healthy. They have created and sell a special kind of Omega-3 that comes from plants, which is good for making healthier foods. Nufarm has also worked on making new technology for bioenergy, which is a way to get energy from plants. They are always trying to find new and better ways to help farmers and improve agriculture around the world.
***Strategy Update***
Graincorp (GNC) Trim 2% taking 16.6% profit, switching to Nufarm (*NUF)
GNC – The range trading of one third of this position has served us well with a sell at 8.60 in February which was bought back at $7.20. GNC is now sitting at the top of our range again at $8.40 and a 16% profit and switch to Nufarm is smart
NUF – The recent rain on the eastern seaboard and central-west NSW has secured enough moisture for winter crops to be planted and a surge in demand for Nufarm’s products following high rainfall in the East Coast post-Christmas.
The analyst points out headwinds for Nufarm are progressively turning into tailwinds with potential upside to active ingredient pricing and improving demand levels underpinned by solid farmer economics.
Recent updates from Agriculture companies are backward looking with sentiment sitting in “El Nino” conditions as opposed to the forward looking 65%-75% chance of “La Nina” by September
GNC SELL 2% >$8.40 (16.6% profit)
New allocation 3%
NUF BUY 2% <$5.25
Price target $6
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.