What Happened to the Ridley Corporation Share Price?
Shares in Ridley Corporation [ASX:RIC] rose over 3% today.
Why Did This Happen to Ridley Shares?
The stock market is pricing in stronger earnings to come for the company. The shares are also moving up alongside the overall bullish trend of the market.
However, there has been no official announcement from the company since November.
What Now for Ridley?
I asked our value investing analyst Greg Canavan for his take. He’s covered the share in detail. He told me,
‘The stock is not dirt cheap, but a close inspection of the balance sheet reveals hidden value that the market hasn’t yet recognised. We’ll need a lot more food in the years to come, and Ridley is well placed to help service that need.
‘Consider this recent quote from The Economist:
“In the next 40 years humans will need to produce more food than they did in the previous 10,000 put together.”
‘It’s a good long term story and with the lowering of the Aussie dollar, our agricultural resources will become more competitive on a global scale.’
If you’re interested in further analysis on the profit opportunities in companies like Ridley , click here for more.
Editor, Markets and Money