AG GROWTH INTERNATIONAL INC.(Toronto: AFN.TO )
AG GROWTH INC FD (AGGZF.PK)
Started a tracking position in Ag Growth International. This is an AG equipment firm, profitable (PE 11.55) and is set up to pay a monthly dividend (as a Canadian Income Fund) which currently yields 7.32%. The 52wk high is $50.00/share.
The company WEB site has a good description of the equipment they sell and their international distribution network.
aggrowth.com
AGI has pursued a strategy of organic growth complemented by strategic acquisitions to become the preferred supplier of high-quality grain handling equipment and related products for both dealers and farmers. Acquisitions in support of this strategy included Batco Manufacturing (specialty crop belt conveyors), Wheatheart Manufacturing (grain handling equipment), Westfield Industries (portable grain augers), Edwards Group (Grain Guard and Keho brand aeration, grain drying and storage equipment), Hi Roller (stationary belt conveyors), Twister (galvanized grain bins), Union Iron (material handling and storage equipment), Applegate Livestock Equipment (livestock equipment), Mepu (grain-drying systems), Franklin Enterprises (custom manufacturing) and Tramco (chain conveyors).
Their product lines are tailored to specialty grain harvest implements including storage bins and grain conveyer systems. Good growth in Russia, Australia and Mexico/Brazil.
June 2011 Presentation (12 pg pdf): aggrowth.com
Sold 25% of EGAS in IRA to buy starter position. Dividends paid monthly and exempt from foreign tax withholding due to Canada/US treaty. If held in a taxable account there would be a 15% Foreign Tax withholding.
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