After Big AgFeed Rally Last Monday, Wait for Opportunity to Buy
AgFeed (FEED) rallied big Monday and through yesterday on news that it is entering into an agreement to genetically improve the quality of the swines it breeds in China to sell into that market. This company is a play on China and ag. It has been tremendously under-valued, as it's a small-cap. Even with the run-up this week, its forward P/E is only 6, and it has almost no debt.
Watch for profit-taking, including what we're seeing today, for next few days, but it is worth looking at as a long afterwards.
This post was originally published in RealMoney.com on 4/16/2009 10:21 AM EDT
