AgJunction Inc (AJX-T)

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.

(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.

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.

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.

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.

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.

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.

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.

This company does agricultural GPS and steering systems. Merged with Novariant, which is going fairly well. They are dealing with some write offs. Whenever 2 companies of about the same size merge, there are always write-downs and it always takes awhile for them to gain traction. Thinks this could go up 4 or 5 times.

This is GPS for agriculture. They also concentrate on steering for tractors. Just did a deal today with a much bigger company, and provide the steering that it needs. A clean balance sheet with no debt. Thinks it can do well going forward.

GPS systems in agriculture in order to help farmers on yields. An individual in Europe had to sell a lot of shares of the change in some European laws. He likes the company. Have merged with another company, and there may be hiccups because of write-downs. The company could triple or quadruple, but that could take a while.

The merger with Novariant will have an impact on the company. It gives it more size which is important. When 2 companies of about the same size merge, you can have write-downs for a little while. The agricultural space they deal in, GPS for the most part is not doing very well. Longer-term it is a good space to be in. He likes the company. They have a clean balance sheet and revenues. He is happy to hold. It is possible they could quadruple from here. Expects there will be tax loss selling in the next few weeks.

The European owner had to sell a lot of shares because of regulations and the stock went down about $0.40. They are currently merging with another company, and need approval in California. Even though this is based in Kansas City now, it is still a Canadian company because it was based in Calgary. The share count is going to go up quite a bit, over 120 million. If it weakens a fair bit, he could actually possibly buy more.