This Day On The Street
Continue to site
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

Four Overlooked Agriculture Stocks

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

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG
CQB $14.49 0.00%
AGRO $10.14 0.00%
CZZ $7.53 0.00%
TSN $39.03 0.00%
AAPL $124.75 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs