GNC has taken an absolute pasting over the last couple of days with profit downgrades and global grain gluts. Agriculture linked companies are cyclical with swings in prices and profits. With a share price below $6 now I've been buying. GNC has managed to maintain its dividend throughout the last 4-5 years, and if it continues to do so you're looking at an 8% return before franking credits at current prices. It has seen much higher profits in the past and paid much bigger dividends in the good times. Morningstar recently cut its 'fair value' to $7.98 which would be about a 40% capital gain from today's price as I type this ($5.70). So I think there is a pretty good opportunity for SP appreciation in the medium term from today's prices and a tidy dividend return while you wait.

Using Perplexity to help me do some DCF comparisons I get a Bear Case of $6.50 to $7 and a Bull 'plausible range' of $8.50 to $10.

Interested in other opinions and any counter arguments / points.