Pinned valuation:
Based on a forward PE of 10x. Currently trading at 9.5x
Conservative estimate as it has traded at a higher PE before.
I think this stock flies under the radar. The main code SGL cannot trade and the stock trades on the SGLLV code as a B share. Todays results suggest a lot of value to unlock still. 50c dividend fully franked for year that is over 10% including franking. Corporate action to acquire rest of PNG operation. This is kicking goals. I think Edgescape is on the money here.
Reason why it is undervalued is because there are hardly any institutional holders on the register.
I believe most are farmers and they can exit when they leave the profession and this creates possible overhang of shares should they decide to sell.
Ricegrowers is similar to a coupon bond but perhaps adjusted to the growth of the business. Similar to an inflation-linked bond. But there is nothing in SGLLV that is linked to inflation.
I'm probably going to make more return on the income than the capital LOL.
Good result and has a good business model that is geographically diversified than other Ag stocks, but I'm sure the shares will get sold off over the coming days. Ag stocks don't perform well in a recession.
[held]