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

To: Lazarus who wrote (70367)	5/18/2022 8:28:27 PM
From: E_K_S	1 Recommendation Recommended By Lazarus Respond to of 78774

Re:SANW I own this one too w/ an avg cost around $2/share. Looks like they are increasing their stock sale by 45% AMENDMENT NO. 2 DATED MAY 17, 2022(To the Prospectus Dated November 2, 2020)On May 17, 2022, we entered into an a mendment to the Sales Agreement with B. Riley Securities. This Amendment is being filed to increase the aggregate offering price of the shares of our common stock offered by the Prospectus and that may be sold pursuant to the Sales Agreement. Each reference to “$17,100,000” in the Prospectus is hereby amended to be “24,600,000”. As of the date of this Amendment, we have sold an aggregate of 5,641,915 shares of our common stock pursuant to the Sales Agreement with an aggregate offering price of approximately $17.1 million, leaving an aggregate offering price of up to approximately $7.5 million remaining under this Amendment SANW has some very unique licensed hybrid seeds. Could be a matter of 'scale' but the varieties they developed help expand production into marginal land areas. If you search the thread, I have reported on them extensively. Do not be surprised if CTVA acquires them. There are few seed developers publicly traded. The other one I own is RKDA. Today they traded almost 3x ADV and were +7% for the day. They work on seed development and are located near UC Davis and work w/ the University's Ag extension group. I own some CTVA from the spin off and they appear fairly priced at a PE of 22. --------------------------------------------- RKDA is a good one to swing trade too but at some point either or both of these seed development companies will be acquired IMO. Tiny market caps so you acquire them for their R&D team and licensed seeds. I have these in my AG basket and combined are very small position less than 0.05%. I track them to see the customers they work with. SANW sells to farmers in Australia and New Zealand as their drought tolerant alfalfa seeds grow well in saline soils. Did you know that Saudi Arabia grows a lot of alfalfa in AZ and ships the end product back to Saudi Arabia to feed their dairy cows. Why are Saudi Arabian cows still eating Arizona's water? This is a 2019 article but it is still going on and AZ residents are getting pissed. A quick search show that Saudi Arabia imports a lot of alfalfa seed so they must also be growing it in their desert climate. At some point there is/will be a lot of value in these seed development companies. That's my take but I graduated as an Ag business/economist (UC Davis) and have always been interested in the business of growing food. Fast Forward 44 years and we are seeing 'potential' food shortages. So now what? Soylent Green?