Shares in Australian Agricultural Company Ltd (ASX: AAC) are up 5.8% to $1.17 at the time of writing off the back of rumours Minerva Foods is circling the cattle breeder as an acquisition target.
According to The Australian speculation is mounting Brazil’s Minerva Foods is sounding out the Australian Agricultural Company for acquisition after Minerva’s CEO Iain Mars was spotted in Australia.
According to the article “there has been noise” about potential corporate activity surrounding Minerva and AAC, but nothing is in writing yet.
AAC’s released disappointing full year results yesterday including a statutory EBITDA loss of $35.3 million at $13.6 million – down from $45 million at FY17.
While AAC maintains it has a “strong balance sheet with significant liquidity” results showed its net operating cash flow was negative $39.9 million, from a positive operating cash flow of $29.3 million in FY17.
Earnings have been hit by increased competition according to AAC, but other agricultural stocks are certainly faring better in the current environment, with agribusiness Elders Ltd (ASX: ELD) shares up more than 80% on its share price of $4.99 at this time last year to sit at $9.03 at the time of writing and Ruralco Holdings Ltd (ASX: RHL) also generally tracking up over the last 12 months.
It's been a nail-biter of a reporting season here in the first half of 2018.
But the real action, in my opinion, is what companies are doing with dividends.
What does this mean for you? Well there is one stock I've found that could very well turn out to be THE best buy of 2018. And while there's no such thing as a 'sure thing' when it comes to investing - this ripper might come as close as I've ever seen.
Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.