Benj Gallander AgJunction Inc AJX-T BUY Apr 17, 2013

Did a merger with Novarient about a year ago. Usually when companies of equal size merge, there are often a lot of write offs, which has happened somewhat in this case. He likes the company and thinks it has a lot of potential. It wouldn’t surprise him if there was a lot of tax loss selling towards the end of the year. Before buying, he would probably wait towards the end of the year just in case there is more tax loss selling, but you could do well by buying now.

The AG space was exciting a couple of years ago. It is a necessary space. Their merger left their sales back where they were pre-merger. It is taking some tax loss selling now. Management is reasonable. They have no debt.

A GPS system for agriculture. A speculative play. Did a merger over a year ago, and unfortunately the revenues are now less than when they merged. In the recent quarter, they lost $14 million, but about 11 million of that was a good will write off. No debt and $15 million in the bank. Doesn’t expect a turnaround soon, because the agriculture market isn’t that good.

They have a far bit of cash. They have no debt. They continue to lose money. They can lose money in good times and in bad. Their sales now are less than before they merged.

They did a merger with another company that doubled their size, but then the revenues went below their previous levels. A lot of the AG companies are doing well. He is happy to hold it, but does not know when there will be a breakthrough.

Precision agriculture. Still on his Buy list. It hasn’t worked out at all for him. Agriculture seems to be doing better, but this one has been left on the rails.

(A Top Pick Feb 7/17. Down 5%.) This does GPS's in agricultural. Has lost money most years. He made quite a bit of change before, buying it at $.50 and selling it for around $1.30. Last quarter revenues went up 35%. The balance sheet has no debt, and they have $16 million in the bank.

He sold it and bought back lower. He cannot find a good catalyst to make it move. Revenues went up 5 straight quarters, but this company cannot make money. He likes it now. It is on his buy list but he does not know what is the next catalyst. Maybe it is profitability.