Agriterra (LON:AGTA) (3.25p and 1.6% of JIC portfolio) has given a brief update on its beef operations in Mozambique. Following the opening of its new abattoir and its first retail unit in Chimoio a couple of months ago it has opened a second unit located in Tete. The Company plans to open a further four retail units during 2013 to be supplied by its abattoir. As Euan Kay, Executive Director says this should improve the margins from its beef operations significantly.
Conclusion: Having invested heavily in building its beef operations in Mozambique we are now moving into a phase where we should start to see some returns on that investment. Since buying the position back in November a fair amount has happened at the Company but the share price has made very little progress. After receiving $28m cash from Marathon Oil in January, cash now represents about half of the market capitalisation. Furthermore, the NAV of the business is around 5.3p per share. As sales increase at the agricultural operations hopefully scepticism about the Company will turn to enthusiasm. Happy holder!
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Johnrosier
I manage my subscription website www.JohnsInvestmentChronicle.com in which I show my portfolio and all transactions. I blog within an hour of trading, with an explanation, and send an alert email to all my subscribers. I do not pretend to have all the answers but I hope my portfolio, and the trades, provides food for thought as well as helping those who are new to managing their own portfolios.I think what I do is unique. There are plenty of tipsters out there who will remind you of the good ones and quietly forget the duffers; I do not have that luxury as the portfolio is there for all to see. I have to confront my mistakes and deal with them. A tipster also does not show how a tip fits into the context of an overall portfolio. My portfolio of up to 30 holdings has different holding sizes based on my conviction behind the stock and its risk. I set up www.JohnsInvestmentChronicle.com in January 2012. Prior to that :In September 1984, I left university with a degree in Zoology and started work in the City of London. Over the next twenty five years most of my time was spent managing UK equity portfolios with Fleming Investment Management and Henderson Global Investors, for company and local authority pension schemes as well as the reserve fund for a well known charity. During 2009 I left full time employment and decided to take time out to consider the next stage of my career. In the meantime I have been putting my years of experience to good use investing the family savings. I have thoroughly enjoyed the freedom of investing from home and despite some tricky periods during 2011 it has been a rewarding experience. more »
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