AgFeed Industries (FEED): Shares cycling in bullish 'flag' pattern

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AgFeed Industries (NASDAQ: FEED) is the top premix feed company in China, operating through subsidiaries that develop and manufacture blended feed and feed additives for the Chinese domestic pork husbandry market. One division also makes premixed chicken feed. Products are sold through over 500 independently owned sales agents, concentrated in key agricultural regions across the country. AgFeed also operates its own hog farms. It is currently ranked as the second largest commercial hog producer in the country.

The firm pleased investors last week, when it issued FY08 EPS guidance of 96 cents to $1.10. The Street had been expecting 96 cents. Earlier this week, it followed that news with word that it had entered into agreements to acquire majority ownership of several more commercial hog farms in southern China provinces. The deal involved a price less than three times projected 2008 net income for the businesses.

Continue reading AgFeed Industries (FEED): Shares cycling in bullish 'flag' pattern

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