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Nufarm Ltd (NUF) $4.99

Global pesticide company NUF has endured a fortnight to forget as its shares have tumbled 26% following the news that major shareholder Sumitomo had sold their 1.9% stake in the business at an average price of $5.38, well below the average level of recent weeks but already 7% above yesterdays close. The previously largest shareholder crystallised a painful  loss after buying into NUF post the GFC at $14 – ouch! It looks like a concerning strategic move but considering where the Japanese chemical giant went long it’s easy to argue against paying too much attention towards their selling i.e. they’re no trading experts!

Obviously questions are currently being raised around the business alliance between Nufarm and Sumitomo although NUF has said its businesses as usual. The Australian agricultural company reported a 41% increase in 1H EBITDA to $330 earlier in the month which we liked but following this most recent news MM is happy to adopt a more neutral stance although we do like the businesses focus as food prices soar ever higher.

NUF
MM is neutral NUF
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Nufarm Ltd (NUF)
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