Agricultural stocks have been a big winner over the last year or so. The leaders of the sector are Potash, Monsanto and Mosaic which have had great returns for their shareholders except for the ones that bought and held on to the stocks during that period. These stocks as well as the sector have come back down to their levels of last December.
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With the way the markets have been performing, it has caused the entire sector to pull back to levels that can’t be ignored. On September 8th these three Stocks have hit their lows of the year and what should be a great entry point back into them. Their fundamentals are still strong and should be a great buy. About two months ago Jim Cramer of Mad Money said that these stock are out of favor with the street, but I beg to differ.
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What really caught my eye last month was Converted Organics Inc, a stock that I’ve been in before and made some money. When the stock fell below $4 per share I decided to jump back in, but instead of buying ticker symbol: COIN, I looked at their other symbol: COINZ Converted Organic CL B WRTS which has basically mirrored the parent stock. I bought into the stock at $2 a share and in the first two days it did drop $.25 where it hasn’t looked back since. In the last three weeks it has gone up over 250%, I don’t know about you, but those are the types of quick returns I love to see. The company has continued to make deals and grow. They reported that their revenue grew in the second quarter. In their press release dated August 13, 2008 the president Edward J. Gildea said “We are very pleased to report that Converted Organics’ revenue almost doubled from first quarter to second quarter of 2008, and we look forward to updating Converted Organics shareholders on the status of their business, We are very pleased with the Company’s progress thus far in 2008, and we are optimistic about future potential.”
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As for myself, I too am very pleased with the reports that have been released and enjoy the gains that I’m having so far.
At the present time the only stock of this group that I own is COINZ, but I am waiting for another pull back from the other three and do plan to get in at that time.
Before buying any stocks that I’ve spoken about in this post, please do your homework to see if this invest is right for you.
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