Monday, November 30, 2009

AG Growth International 2

I want to continue my review today of the AG Growth International company (TSX-AFN). This is an Income Trust stock touted in the Money Show. There was a lot of talk at this show about some of the Unit Trust being currently good buys with very good yield. This stock has already converted to a corporation.

When I look at Insider Selling and Insider Buying reports, what I see is some bit of selling by an officer of the company. This is minor. Perhaps a better indication is that recent stock options granted to CEO, CFO, some officers and some directors have been kept rather than sold.

When you look at spreadsheet ratios, I find that the P/E is low. I get a P/E of 9.5 and sites that use the last 12 months earnings get about the same. The P/E 5 year low for this stock is 9.4. Any P/E of 10 or less is low. When I look at the dividend yield, it is currently just over 6% where the 5 year average is just over 8%. At the Money Show analysts thought that income trust when they converted to corporations would have lower dividend rates and they rates would be in the 4% to 6% range. This is currently at the top of this range.

When I look at the Price/Book Value Ratio, I find that the current ratio is 2.51, which is higher than the 5 year average of 1.79. The lower this ratio is the better the relative stock price, of course. A P/BV ratio of 2.51 is not particularly high, nor is that low. The last thing to look at is the Graham Price. The stock price is only about 3% higher than the Graham Price. All the above items point to a reasonable, but not a great current stock price.

Globe investor gives this stock a 4 star rating. When I look at analysts recommendations, I find that there are Strong Buy recommendations and Buy recommendations. The consensus recommendation will be a Buy. (See my site for information on analyst ratings.) There are more Strong Buy recommendations than Buy recommendations. I cannot find any other rating. It is obvious that a lot of analysts like this stock.

Ag Growth is a leading North American manufacturer of portable grain handling equipment, consisting of augers, belt conveyors, grain drying, fencing, post hole augers, and other ancillary grain handling accessories. This company has 1,400 dealers and distributors in Canada and the United States. Its web site is See my spreadsheet at

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at for a list of the stocks for which I have put up spreadsheets. Also, look at other investing notes on my website at

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