- Notwithstanding its strong run to date, GNC still stands to gain in the soft-commodity bull market.
- Better yields locally come as conditions worsen overseas, particularly in the US and Russia.
- Demand for grains globally remains high, and especially from China where winter crop was poor.
Graincorp Ltd (GNC) provides grain industry related services, through bulk/grain handing and storage for growers, end users and marketing organizations. GNC also operates grain pools, provides transportation services, along with farming products and flour milling/mixing services.
GNC has been both a strong outperformer versus the market as a whole and against arguments that the soft commodity boom has run its course. The company has delivered a growing return on equity since the GFC and with its competition owned by foreign multinationals, GNC has also been a prize stock for many investors speculating on its attractions as a potential takeover target.
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