Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Macro Events Buffeting Adecoagro

Farming is hard enough without the added issues of questionable government actions, but that's the reality of the operating environment for Adecoagro (NYSE:AGRO). This large South American sugar, ethanol, farming, and land company has had to deal with the "known unknowns" of uncertainties in sugar, ethanol, crop, and land prices, but also the ongoing problems in the Argentine economy, the risk of larger harvests in North America, and now the geopolitical issues between Ukraine and Russia.

Adecoagro remains a patience-testing play on the realization of the underlying value of its land holdings and its long-term expansion plans in sugarcane processing and ethanol production. Today's valuation continues to look well short of that implied by recent land transactions and...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details