Throughout November, the AAG Agri-Index rose an impressive 5% and continued its rollercoaster ride for the year. The All Ords followed a similar path, however gaining just 2%.
A description of the major movers and some analysis is provided below.
Last updated 8 December 2009.
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Chart. 1 November - 30 November 2009
The three sub-sectors produced mixed results this month with the manufacturer sector gaining 5%, the diversified sector falling 5% and the producer sector falling 2%.
Solverdi Worldwide was the top performer for the fortnight, adding 50% to its value after it executed a fifteen year, renewable contract with IBI Inc. including a commitment for the supply of biofuels from the Turkish Republic of Northern Cyprus. The contract will see SWW with the opportunity to ship and convert their former Narangba facility in Brisbane to Cyprus.
Montec International equaled the performance of SWW to also rise 50% with improved confidence in the company following its latest business strategy update reiterating its focus to establish strategic partnerships for specific products in China, specifically children’s formula and ice cream.
Clover Corporation climbed strongly after information released in the Chairman’s address to shareholders showed sound financial performance by the company. Profit before tax growth over the last four years has totalled 333%, while a healthy balance sheet was reported with no debt and cash/cash equivalents of $9.2 million at 30 June 2009 with cash flows from operations expected to be positive again in 2010. Furthermore, in the financial year to date, sales have begun strongly showing a 70% increase (to $12.7 million) over the same period last year. For the month CLV added 28% to its share value.
Clean Seas Tuna rose 26% as the broader market improved while also revealing it had entered into a conditional underwriting agreement to have its capital raising fully underwritten. The funds will be used to repay its banking facility.
Dromana Estate added 23% after entering into agreements with Hong Kong based companies with respect to an investment in Dromana and an agreement to distribute wine in China. As a result of the deal, Dromana noted in a statement to the ASX it will be able to restructure the Dromana group to “unlock the value in it the wine business and the leisure property project in which Dromana has an interest,” in a statement to the ASX. DMY has held up well despite the announcement of Dromana’s Australian distributor, RWS & Co Pty Ltd, being placed into liquidation with $215,000 of unsecured debts at stake.
The top 5 Increases Month
| Code | Company | 1 Nov Open | 30 Nov Close | Movement |
|---|---|---|---|---|
| MTI | Montec International | $ 0.004 | $ 0.006 | +50.0% |
| SWW | Solverdi Worldwide | $ 0.090 | $ 0.135 | +50.0% |
| CLV | Clover Corporation | $ 0.200 | $ 0.255 | +27.5% |
| CSS | Clean Seas Tuna | $ 0.250 | $ 0.315 | +26.0% |
| DMY | Dromana Estate | $ 0.030 | $ 0.037 | +23.3% |
Olea Australis was the worst performer for the month, shedding 25% despite a very quiet month on the news front.
Farm Pride Foods dropped 20% over November thanks to prevailing market conditions of excess egg supply and volatility in currencies which has meant there has been downward price pressure with decreasing margins and increased stock holdings for the 2009 calendar year.
CO2 Group landed an expanded agreement with ACTEW to increase its planting project size by at least 50% accompanied by a 30 year management agreement. Despite this favourable news, CO2 Group still posted a fall of 19% for the month.
Freedom Nutritional Products fell 17% with the announcement of a capital raising entitlement offer at a substantial discount.
In other movements, The Ark Fund fell 18% over November.
The top 5 Decreases Month
| Code | Company | 1 Nov Open | 30 Nov Close | Movement |
|---|---|---|---|---|
| OLE | Olea Australis | $ 0.004 | $ 0.003 | -25.0% |
| FRM | Farm Pride Foods | $ 0.255 | $ 0.205 | -19.6% |
| COZ | CO2 Group | $ 0.400 | $ 0.325 | -18.8% |
| ARJ | The Ark Fund | $ 0.710 | $ 0.580 | -18.3% |
| FNP | Freedom Nutritional Foods | $ 0.350 | $ 0.290 | -17.1% |