Australian Agriculutre (AAC) is Australia’s largest integrated cattle and beef producer with operations comprising of feedlots and farms covering a whopping 6.5 million hectares of land in QLD and the NT.
At the moment we believe AAC is a bargain as the stock is trading at a 40% discount to it’s reported net tangible assets (NTA). So investors are in the unique position whereby they can buy a high quality cattle farming operation at basically 60c in the dollar – try finding a better deal than that in rural Australia right now!
As AAC’s share registry is dominated by two billionaires (Joe Lewis owns 50%, Twiggy Forrest 19%), there is also a good chance of some kind of corporate activity which will close the existing NTA gap.
With a strong balance sheet, a bullish outlook for beef prices, and a cheap stock price, the probabilities of success with this investment is looking pretty good. BUY