NUF Longplease do your own analysis/research and make decisions based on own assessment.
i am not responsible for your decisions/outcomes.
NUF trade ideas
NUF has been on a run. What next?NUF has been on a run since November and now sitting at the top of the well respected channel and bollinger band. Short would be looking for a bounce off upper trend line and longs looking for a break out above upper trend. Short alert set for 4.98 and long alert set for 5.40 within next 5 days which could be psychological level. this is a wait and see situation for now.
For educational purposes only
Do your own research
NUF - TRADE PLANInverse head & shoulders
Divergence
Lower high, trend reversal
Bull channel
break and retest supply demand zone
Nufarm South America Asset SalesNufarm was up by more than 20% after confirming the sale of its South American assets, associated with seed treatment and crop protection. The company has sold the assets for A$1.19 billion to Sumitomo Chemical.
The transaction includes assets in Brazil, Chile, Colombia, and Argentina. The sale should allow the Australian farming company to focus on high margin, crop protection market in key markets across Europe and North America. With the sale of the South American crop protection and seed treatment assets, the company intends to buy back shares worth A$97.5 million it sold the Japanese Investor in August.
The sale comes at a time when the company needs to raise some cash to pay down its debt. The sale also comes at a time when a number of Australian companies in the industry are struggling to boost cash flow levels hurt due to harsh weather conditions that has affected farming operations.
The company saw its net profit for the year ending July 31 drop 10% to $89.1 million. Nufarm woes in the industry are further compounded’ by severe flooding in the U.S that has affected its farming operations.
NUF . A good time to BuyNUF’s stock is now floating at around -43% below its actual worth of $15.8, at the market price of AU$8.95, according to my discounted cash flow model. This difference in price and value gives us a chance to buy low.
NUF is also a financially robust company, as current assets can cover liabilities in the near term and over the long run. The stock’s debt-to-equity ratio of 46.31% has been diminishing over time, revealing NUF’s capacity to pay down its debt.
