AGT Food & Ingredients (AGT.TO)

It has also broken out of a major base. Then it had a major uptrend. Significant upside targets. If you would like more information, check out the report he wrote on the top picks at info@ phases-cycles.com.

The seem to be in the right place at the right time with more and more of the world turning to other forms of grain/pulses, as a substitution on gluten ingredients. Next year is the year of the pulse, which will give them a lot more attention. They have been expanding their food ingredients side. This is one of the dominant players in pulses globally. Dividend yield of 2.01%.

Pretty good space. Gluten free is all the rage. The stock chart has been pretty whippy lately, pretty volatile. Would like to see the stock holding around $30.86 though. Right space, volatility is high, but the intermediate trend will go higher.

(A Top Pick Nov 12/14. Up 21.39%.) This is about pulses and beans. As a theme, food is going to be in tremendous demand.

Has this on his Watch List. Likes what they are doing. Dividend yield of 1.9%, and it looks like there is going to be a good earnings growth. Right now the PE is 57X, so he wants to see some earnings growth so it grows into a lower multiple.

Chart shows a long period of sideways congestion from September through to May, followed by a breakout which it is testing right now. Hit an all-time high recently, and when a company does this, it is never the last one. It should work higher.

Produces lentils, chickpeas and gluten-free pasta. More and more people are looking for healthier diets. They are looking for protein outside of red meat. Last quarter their EBITDA was up about 33%. Have done a very good job of increasing margins. The whole macro environment is doing well for them. There has been a bad crop of lentils and chickpeas in India. They signed a couple of joint venture deals, where they are producing more at higher margins. Margins are very high on gluten-free pasta. There have been a lot of acquisitions in the space at much higher multiples, and thinks this will eventually get taken out.

The stock looks great. Broke a downtrend in early 2013 and then made a base. This was followed by a breakout and an uptrend in 2014. As long as it continues on its upward trend line, the stock looks great, as long as it does not break the 200 day moving average. This doesn’t look like it is in any kind of danger at all.

One of the leaders in pulse processing for export and domestic markets. Recently have moved into food ingredient areas with pulses. They are non-GMO. They are in a growth segment of the market where there is growing demand. Have been reinvesting and building out and growing out their capital projects. Yield of 2.31%.

(Top Pick Mar 18/14, Up 54.22%) It is a play on food. He thinks it will work higher. Stay with it.

Lentils. 10% of the world’s food intake is pulses, which is lentils, peas, etc. Was a hot growth stock after it went public in the late 2000’s. Rained a lot in 2010 which wiped out the lentil crop in Saskatchewan. It has come back and they do $1 billion in sales. The largest global exporter of lentils with operations in Turkey and Australia. Started to get into food ingredients, so have gone into a joint venture. Yield of 2.31%.

Macro environment is ideal. Chick peas and so on as an alternative to red meat. 15 times earnings. Next quarter should be a record quarter for them. There has been a lot of consolidation in this industry. Have done well for 6 quarters.

(A Top Pick Nov 12/14. Down 1.68%.) Stock has been going sideways, but he really like food as a theme. The trend over the last number of years has been towards more high-protein vegetable type products, and this company is in a fantastic position to capitalize on that. They did a new issue in November, and the stock has moved sideways since, but once some overhang is taken care of, the stock is going to go higher. Still likes.

Started out as a small Saskatchewan company, processing lentils. They are now going larger scale into providing food ingredients for some of the large global players. Extremely well-run. Thinks the dividend will increase with the cash flow, however they do have some CapX programs going. Over the next 2 years, he can see this very easily getting to $40.

An agriculture stock. (He prefers Archer Daniels Midland (ADM-N)). Consumer stocks can do well at this time of year, but in the past few days, he has seen a fairly significant break of support at around $24. The period of seasonal strength happens more May through September. Given that we are out of the period of seasonal strength, there is not much reason to hold this.