American Vanguard: Strong Agricultural Prospects Should Help Overcome Debt

I love stocks that slip under the radar. Small companies many investors have not heard of, selling at a value. Even better, they may be positioned within sectors that are off and running, like agriculture.

Those who have read my stuff know that I have been bullish on the fertilizer and seed companies for some time now. Some stocks I like better like Potash Corp. (POT) and others that trade at a value like Compass Minerals (CMP), and there are also areas that are being ignored, such as agricultural chemicals. Just like seeds and fertilizer, insecticides and other chemicals are seeing increased pricing power. They have been ignored as farmers in the United States and Canada prefer to purchase seeds that are genetically altered to be resistant to insects, fungus, etc. The reason that we are still seeing a large demand for these chemicals is that many countries do not allow some or all of the technologies that are offered by companies such as Monsanto (MON). Investors anticipate that countries such as China will allow these technologies, but I believe they will continue to use chemicals until they develop their own.