This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Four Overlooked Agriculture Stocks

Stocks in this article: CZZ AGRO TSN CQB

NEW YORK ( TheStreet) -- If some agricultural equities look a little exhausted these days -- especially as underlying commodities prices turn south across the board -- that doesn't mean that investment prospects in the sector have dried up, at least according to one hedge-fund portfolio manager focused on the farm business.

"We find opportunities that are not mainstream," says Ejnar Knudsen, who has run Passport Capital's agricultural-focused fund since its inception in March 2009.

Knudsen is a long-term bull on ag for reasons shared by many other investors: global population growth, and the rising middle classes in China, India and other emerging economies, which will put pressure, they say, on food supplies.

Still, Knudsen knows that danger lurks when it comes to the more obvious agricultural stocks -- such as Deere (DE), Potash (POT) or Archer Daniels Midland (ADM).

"If you're in some of the more popular names, you either have to be much more tactical, or you have to be really long term in order to handle these downdrafts," Knudsen says. "If the world catches flu, some of these popular ag names will also catch flu."

That's why Knudsen looks for food and agriculture stocks "that have a margin of safety and don't have a lot of hot money poured into them." There are companies out there trading near book value, he says, or at multiples (six times EBIDTA, say), that offer "attractive opportunities."

"You could have the world reset at lower levels, and these companies will still do well," says Knudsen.

Here are four of Knudsen's overlooked agrarian favorites:

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,387.21 -291.49 -1.65%
S&P 500 2,029.55 -27.54 -1.34%
NASDAQ 4,681.4970 -90.2660 -1.89%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs