Over the two weeks before the release of its final results for the 2023 financial year, Nufarm shares (ASX code NUF) rose more than four per cent from their 12-month low of $4.29.
With its global range of crop protection, seeds, biofuel and omega-3 products, Nufarm is one of those conglomerates that produces slow but steady growth. US sales down, Europe up, Asia Pacific down, but seeds growing nicely.
Net result not likely to be dramatically different.
By the Punter's impatient standards, NUF has been firmly in the downright boring category. Nevertheless, on the eve of the results, the shares had fallen by nearly 30pc since January, which is why it has been on his watchlist for some time.
As recently as the end of September, an update from the company suggested it was still on track for underlying gross earnings of $430 million to $440m - only slightly down from the $447m in the previous year, which was a particularly good year.
In the hope that interest in the shares will fade again for a time after the results, the Punter last week placed an order for 400 NUF at $4.20 a share - 30c below the market at the time.
That's a lot less than the big brokers were predicting after the September update, when various investment houses cut their target prices for NUF to between $5.50 to $7 a share. But even at $4.20, the NUF dividend yields less only 2.6pc.
In the short term, you'd be better keeping your money in the bank.
Meanwhile, with would-be urea producer NeuRizer (NRZ) trading around or slightly above the 2.5c offer price of its 1-for-10 share purchase plan, the Punter has applied for his full entitlement of 7500 shares, which come with 7500 saleable options to buy more shares at 7c any time over the next two years. The offer closes on November 17.
- The Punter has no financial qualifications and no links to the financial services industry. He owns shares in a number of companies featured in this column.
