Ag Growth International Inc (AFN-T)

Makes specialized ag items like grain bins. Agriculture is very cyclical, and it's a warning sign that DE was just downgraded due to being at top of the cycle. Probably hold, but don't buy more today. Look at it next year, when it will probably be lower.

Have performed strongly in Canada. Margins are improving. Have passed on higher costs to customers. Have paid off a lot of debt in recent years. Trades at 11x PE. Not a dividend stock, and still likes it.

Historically when Ag Growth has reached 4X BV it sets back and it is at that point today. The market has a memory for this and investors should not bet against the market.  Regarding farm stocks in general, Nutrien looks good along with the fertilizer outlook and is down 30%. The world is very much in need of more food production.

It has stopped making acquisitions, is paying down debt quickly and has great free cash flow. It is in the storage and handling systems business for grains, fertilizers and other agricultural products and does not have commodity risks. It has reported record profits and is guiding to decent growth with a big backlog. Trading at 7 1/2 times EBITA

Peak valuation now. He models $60, today's price. Would buy at $35. It's cyclical which will decline in a recession.

Stock and FMV have been doing well -- decent, but not fabulous. Potential of $70. They're in one of the exciting businesses.

Agriculture business in Canada booming due to Russia/Ukraine war.
Expecting strong demand going forward.
Good crops last year supplying farms with more cash to grow.
Cyclical business that is up and down.
Does not own share in the company and hasn't done research.