When I wrote on SLC Agricola (OTCPK:SLCJY) a couple of weeks ago, it was just the first of a handful of Latin American farming names leveraged both to growing international food demand and rising farmland values in Brazil. SLC Agricola is not the only one that looks undervalued, though, as Adecoagro (NYSE:AGRO) looks even more undervalued than SLC Agricola.
There are reasons for this undervaluation, though. For starters, a substantial percentage of the farmland that Adecoagro owns is located in Argentina - a country undergoing significant economic turbulence and a lot of uncertainty regarding financial/tax rules and regulations. What's more, while about 70% of Adecoagro's 2013 EBITDA is likely to be generated in the more stable...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|