Almost every small cap agriculture-related share listing is trading below its net tangible asset value, which experts argue is unwarranted despite the global financial crisis and the sharemarket slump.
According to The Australian Financial Review, apart from managed investment scheme operators, the Australian Agricultural Company (trading at $1.18 today) has had the sharpest downturn in its share value, to be now worth 55pc less than its net tangible asset value, while Maryborough Sugar Factory ($1.67) is 39pc below.
The AFR quotes ABN Amro Morgans as saying the discounts for both companies are unjustified in light of a positive outlook on rural land values amid soft commodity prices.
Email a friend