$1 Agriculture Stock That Can Double
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The food and agriculture sector is on the heels of a huge breakout.
--Corn for December delivery rose 4.2% to $6.55 1/4 a bushel on the Chicago Board of Trade Tuesday, amid indications of low crop yields.
--Soybeans for November delivery rose 1.8% to $14.61 a bushel.
--Wheat for December delivery rose 1.6% to $8.00 1/2 a bushel.
Especially in times of inflation, people still need food! Russia, the third largest supplier of wheat and grains has faced sanctions in the West. With massive supply constraints and natural events, like droughts, etc., certain agricultural companies are to benefit the most.
The key to trading macro events and finding stock that will outperform is to look for cheap, technically set up stocks that fit the sector and theme with a great story behind it. That’s what I’ve done with this stock pick.
My agriculture play is SANW 0.00%↑ S&W Seed Co.
First, let’s take a look at the technical elements behind this stock. After basing around the $1 psychological support level for a few weeks, the weekly chart broke out and is now on the move, with the RSI bouncing from oversold levels and the MACD showing upwards momentum.
Next let’s take a look at another great part of the story: Michael Prince and his fund MFP Investors own almost 50% of the company! He was a legendary value investor who just passed away this year. You can see his stake in the company below: