Wednesday, March 2, 2016

Select Harvests reports mid year result


Select Harvests is an Australian almond producer that I recommended as a way to take advantage of the drought in California. The price of Select Harvests has dropped substantially since I bought it. Nevertheless I am in this one as a long term holding period.

The reason the stock has suffered recently is because of the recent drop in almond prices due to the weakening world economy. The drop in the Australian dollar against the US dollar is not helpful either. The company's operations are still doing well despite the recent weakness as it continues to execute on its strategy to increase production.

The company announced it is paying a dividend which has increased 40% since last year. If you are interested in this company review the management presentation which goes into depth on how the company is positioning itself for additional future growth.

If you are a long term investor the recent drop offers an excellent entry point.

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