GrainCorp is now added to our watch list following the recent Algo Engine buy signal. We see value near $7.50 and look for buying interest to rebuild following the disappointing half year earnings announcement.
GNC reported an underlying net loss after tax of $48 million for the half year. Net profit after tax for the half year last year was $36 million.
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GrainCorp Chief Executive Officer Mark Palmquist says these results reflect a particularly challenging period in grains and oilseeds, including severe drought conditions in eastern Australia and grain trade conditions.
They expect continued demand for Malt products in the 2019 northern hemisphere summer but challenging conditions in eastern Australia to continue in the second half.
Planting for the winter grain crop is well underway in eastern Australia, however it is too early in the season to forecast grain production levels and the potential implications for GrainCorp.
We’ll continue to track GNC and update our readers as we see the short-term indicators rebound.
