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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (48826)	7/18/2012 2:18:46 PM
From: E_K_S	Respond to of 78763

Ag Growth International Inc. (AFN.TO) It has to be because of the potential drought in the U.S. Minimal to no grain and/or corn harvest means no new grain harvest equipment order for U.S. and possibly Canada. For me, it's a time to add as this drought will eventually be over and those orders will be placed when bumper harvest are again the norm. Russia is a very big service area and luckily no drought there. I have an order to pick up more shares in the low $29.00 price range. I have never seen this stock trade any lower and for a time it was in the mid $40's. Nice one to hold in the IRA. I see a trade now around $30.09 at 3x average daily volume. EKS

To: Spekulatius who wrote (48826)	7/19/2012 6:24:56 AM
From: Jurgis Bekepuris	Read Replies (1) \| Respond to of 78763

AFN.TO - the cash flows look pretty ugly. Most of the cash is spent on acquisitions and dividend, so this spending can be stopped, but people would not like the divvie cut. After Q1 they have zero cash and ~150M debt. I'd be concerned that if Q2-Q3 don't go well, they will have either to borrow or to dilute. They did a lot of acquisitions in 2010 and 2011, but even with these acquisitions the sales growth is very slow while the earnings are dropping - and that's even before Q2-Q3. I'll skip.