Today's Wall Street Journal has a very interesting and relevant article to the long term prospects of China Green Agriculture (CGA $14.10), one of the few stocks recently profiled here. The story focuses on rapidly declining agricultural production in India as a result of years of fertilizer misuse for short term production gains The result is unproductive, damaged soil and an increasing reliance of food imports to feed its population.
China Green Agriculture is a fast growing fertilizer company, also in an emerging market, that manufactures and distributes a balanced organic humic acid based fertilizers that are customized so as to produce the most effective and productive long term benefit to soils based upon geographic region and crop. The raw material in their product line is weathered coal, a cheap and widely abundant resource in China. The Chinese government, having learned learned from India's mistakes, recently eliminated the VAT tax on CGA's organic product production for five years. To learn more about CGA, read this blog's article from December 18, 2009. CGA was at $15.00 back then and subsequent rallied to over $18. The recent weakness represents a good entry point on top of a very positive earnings report.
Do your own due diligence.
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