Does MM like Select Harvest (SHV) here?
Gentlemen, Great work on reading the market over the last 6 months. SHV has been badly hit over what appeared a not so bad report. Appreciate your views on whether averaging should be considered.
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Answer
Hi Jeff,
Thanks for the thumbs up, always appreciated.
Agricultural stocks have been a tough place in recent times and SHV has been no exception. Theoretically, the stock should be doing better than it is but if you ask a farmer, the chasm between theory and reality can be large, and there are many variables in between.
A couple of things we are pondering here:
- Most trends have persisted through 2022 and SHV’s trend is clearly down.
- We never advocate averaging unless it was a part of the original investment plan – we have no interest in averaging SHV here.
At this stage, if SHV fails to hold above $4.20 we are likely to cut and move on.
