Buy: ASX:AAC - AUSTRALIAN AGRICULTURAL COMPANY LIMITED - on news of the Japan/Australia trade deal. The expected benefits run into the billions for the beef industry. The share-price languishing close to its historic lows, the technical trigger for entry is above $1.25, with little downside likely, the next resistance hurdles to meet are at $1.36 and then at $1.70. Break-out above this would probably generate further impulsive move higher to $2.40. (VIEW LINK)
The languishing share price is surprising, Australian Agricultural Company has immense property assets and a world ranking as a well-managed agribusiness utilizing scientifically based best practice standards. As trade agreements with Asian countries Japan, South Korea, Singapore, and perhaps China are good news for Australia's agriculture sector and in particular for AAC, this is a good example of an event based catalyst for a technical trade. AAC was up 5% yesterday and is matching up 1% today.
Matt, is this a trade based on fundamentals or more a case of their being a trigger that could bring technicals into play? Any reason as to why the stock has been languishing of late?