Ag Growth International Inc (AFN.TO)

This had a big spike up at the beginning of the year, but has dropped. The whole sector has come off here in the winter/spring. It looks like it is coming back to the upward trend, and he wouldn’t worry unless it got below the $45 area.

Good solid supplier of a number of different pieces of equipment to the agricultural industry. A small to mid cap dividend grower over time. Just made a good acquisition. Stock has had a pretty good run, so it might be a little bit pricey here, but long-term it is a good business.

He sees 26% earnings growth over the next couple of years. They are on the cusp of acquiring Vicwest’s Westeel division, which he thinks is going to double their Canadian sales. Expecting 20% growth on their US sales and he is projecting 37% increase in their international sales. 75% payout ratio. 52% of their earnings are coming from the US. Dividend yield of 4.59%.

In the agricultural supply business and has been doing quite well. Sold off recently. Came in a little light on some of their numbers. In a good sector of the market. He is very positive on the agricultural sector.

This is a type of market where there is really a sense of vexation with collapses going on. He is not selling his holdings, but would suggest that you take some profits, because there are surprises around the corner with everything.

(A Top Pick Dec 20/13. Up 29.23%.) A very nice North American company based in Winnipeg that makes grain augers and grain storage bins. Their big international expedition had been into the Ukraine. He got worried that with the Russians in there, it might disrupt their business, so he sold his holdings at around $46. He is waiting for an opportunity to get back in.

This just continues to do very well. Like everything else, if this correction continues, people will start stripping stuff out of it, but only if they’ve got a big loss.

They did a financing, including a convertible debenture which he purchased. The stock popped, but the convertible debenture went from $100 to $104.25, indicating that the market really likes the prospects here. He doesn’t own the stock. Thinks the stock will do well over time.

Gives you exposure to agriculture, but it is short line type of agricultural products such as augurs, storage bins, etc. Have some good growth aspects such as international. Very decent company and feels the 4.65% dividend is sustainable.

(A Top Pick Dec 20/13. Up 13.7%.) Manufactures agricultural equipment. One of their major non-North American market is the Ukraine. Stock had a good gain last April and the Ukraine looked to him like a difficult market because of the stability, so he sold his holdings. He would go back into this if things settled in the Ukraine.

(Top Pick Oct 2/13, Up 16.32%) The spread from materials in general is still wide so it is an out performer. Still likes the stock.

Believes dividend is sustainable. Likes that it is an ag-related name.

(A Top Pick Dec 20/13. Up 15.11%.) He got out of this recently, when things got ugly in the Ukraine. He needs to see a quarter to see how affected they were.

A company like this not only benefits from what is going on in agriculture in North America, but also in the Ukrainian region. A decent entry point would be $35-$37 range. If you own, consider trimming. 5% dividend yield.

Have not increased their dividend for quite some time. Current payout ratio is good and dividend is safe. They did increase business in Ukraine and it is something to be weary of.