Stock Alert for Agria Corp. (GRO)
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    Small-Cap Stock Spotlight: Agria Gets a Lift on Strong Earnings

    Small-Cap Stock Spotlight: Agria Gets a Lift on Strong Earnings

    Shares of China-based agriculture company Agria Corp. (NYSE: GRO) spiked as much as 37% to $1.45 in Friday trade.  The stock saw trading volume hit 1.27 million shares during the session, versus the 10-day average 109.55 K. Shares closed the session at $1.35, above the 50-day and 200-day moving averages of $1.11 and $1.10, respectively.

     

    GRO shares have gained 50.0% in the last five days and 16.4% in the last month.  Year-to-date, the stock is down 6.9%.

     

    Agria engages in research and development, production and sale of seed products, including field corn seeds, edible corn seeds and vegetable seeds, in China.

     

    The company reported revenue of $158.8 million for the six-month transition period ended June 30, 2011, significantly up from $3.3 million in the comparable period last year. The company realized a net income of $4.0 million for the latest period, reversing a net loss of 16.3 million for the six month period ended June 30, 2010.

     

    In a statement, the company said the results were positively impacted by its fast-growing China seeds business, which achieved a 182% increase in revenue for the six months ended June 30, 2011. It stated that growth was primarily led by higher average selling prices and increased sales volumes of Agria’s edible corn seed products and field corn seed products. The seed business has quickly achieved a critical mass as the Company continues to leverage its high-quality existing seed portfolio, research and development capabilities, and powerful partnerships, notably its partnership with the China National Academy of Agricultural Sciences.

     

    “I am delighted with the dramatic improvement in results and our return to profitability,” commented Xie Tao, CEO of GRO.  “I am equally optimistic about the substantial growth prospects ahead for our business in both the domestic China market and internationally.”

     

    Agria, through Agria Asia, owns a majority equity interest in PGG Wrightson, New Zealand’s largest agricultural services company. PGG Wrightson reported turnover of NZ$1.2 billion ($1.0 billion) for the 12-months ended June 30, 2011.

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