Ag Growth International Inc (AFN.TO)

Manufactures corn augurs that are replaced almost every year and that sell for $10,000 a pop compared to $500,000 for a top rate Deere tractor. Have a great yield of 5.3%. Doing a great business in the Ukraine and the US. On his watch list.

Leading manufacturer of farming equipment in North America. Thinks there will be some torque out of Europe but more broadly, the market for agricultural machinery will strengthen and the momentum will continue. Feels the 5.9% yield is safe and wouldn’t be surprised to see a dividend increase in 2014. Looking for some good upside.

This is a combination story. It is North American, but growth is in Eastern Europe. They build terminals, storage, especially in the Ukraine and Russia. Feels there is a real growth story here. International division has been growing smartly. If this converts the way he hopes, this could be a stock that continues to do better over time. 5.8% yield.

6% dividend. He looked at it but found it was way too expensive. A couple of quarters had sales impacted by weather. Likes the industry and company but not the stock price.

It has been a long-term bear which he thinks has concluded. A nice base was built from late 2011 to early 2013 and long-term downtrend has been violated. It is in the early stages of a bull.

6.1%. Will depend on what happens next spring. As farmers see grain prices rise they tend to buy more equipment. Well run company, good execution, growth by acquisition. Average in over the next few months.

Has held it. This is an attractive entry point. Thinly traded. Attractive yield. Growing international business. This is a company that sells agricultural handling equipment. Depressed currently due to drought conditions in the US. Only concern is that company acquired tax losses previously and it is in dispute and if it goes against them it could increase payout from 75 to 95%.

2^nd half EBITDA is rising, maybe 82% from very strong equipment sales in the US given a large expected corn crop, high grain prices, strong farm incomes and pent-up demand. International sales are expected to grow 30% year-over-year. However, due to higher expenses, his target is only $37 for this year. Feels that the 6.5 %-7% yield is safe.

Payout ratio is pretty high right now but management has said they are not going to cut the dividend. Strong balance sheet. About 60% of revenue is in the US, about 35% in Canada and a little bit in Europe. Will be reporting August 14. May have a soft Q2 because of the wet planting season, which may give you an opportunity to buy. 6.5% yield.

He was concerned from the tax angle as they had purchased some tax losses which he thought Revenue Canada would come after them for. Underlying fundamentals of the company have outweighed this so he recently covered a Short position. From an EBITDA valuation, this is one of the more expensive agricultural names around. Dividend yield of 6.5%.

6.7%. A decent company. Short line grain equipment. Expanding into Europe. Dividend is sustainable. They were caught last year with the crop not being what was expected. It is a call on how strong the North American crop will be. A decent long term story.

Hasn’t done a great deal over the last year because of the drought in the US Midwest. The Canadian and international sites did relatively well. US Department of Agriculture has said there will be a record planting, the largest since 1936. About 6.6% yield.

Company based in the praries, in the farm equipment business. He owns it through convertible debentures.This gives a nice yield on your money and you get the chance to convert those debentures into shares should the stock go up. He feels relativily good about the company but not good enough to buy the common shares.

Likes the company, thinks it will be a very good growth story over the next 4 years. Valuation is decent. Had recent problems with drought issues in the US.

His company has this as a “neutral” with a $26 target. They are in the manufacturing on the agricultural side. Facing quite a lot of challenges.