Last week, we bought American Vanguard Corp (AVD), a diversified specialty and agricultural products company. Its products include insecticides, fungicides, growth regulators and soil fumigants for corn and cotton. Last year, earnings were negatively impacted as farmers shifted acreage from cotton to corn, causing inventory problems in the company’s cotton insecticide; and the stock got whacked. However, the company has a fine record of profit growth, averaging 20%+ annually over the last 10 years; this should continue as the demand from the corn market continues to grow. AVD is also expected to make acquisitions that will contribute to profit increases.
EPS: 2006 $.57, 2007 $.75, 2008 $.90
Disclosure: Author has a long position in AVD
AVD 1-yr chart