Tuesday, June 28, 2016

Picked up more Agrofresh after Brexit panic selling

Agrofresh makes a product that extends the shelf life of apples. Farmers like it and use it. Thje company is probably one of the least correlated to what is happening in the UK. Yet it was thrown out the window with the bathwater. I picked up  ore shares.

What does affect Agrofresh's prospects is the apple harvest. More apples means more product applied. The apple crop is looking good. 

Apple growers in Washington, New York and Michigan are beginning to consider the size of this fall’s crops.

Michigan growers at the Michigan Frozen Food Packers Association 61st annual Fruit Crop Guesstimate in Grand Rapids on June 22, forecast a 26.3 million, 42-pound box crop. That’s up from 24.5 million boxes in 2015.

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I’m pretty excited about the coming season. The 2015 crop will be virtually gone which is helpful. It appears currency values won’t be quite as difficult as the past season for exports and we’re coming off a relatively good year in pricing of Michigan, Washington and New York apples,” said Don Armock, president of Riveridge Produce, Sparta, Mich., one of Michigan’s largest apple producers.

Picking up cheap shares after an emotional selloff is one of the ways that market beating returns are realized. Keeping capital on the sidelines in order to jump on opportunities has served me well through out my investment career. 

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