Graincorp was originally founded in 1917 by the government of NSW as a public sector agency [1] to transport grain from local collection points located on railways throughout the grain-producing regions of the state. Listing on the ASX in 1998, GrainCorp’s core business is the receiving and storage [2] of grain [3] and related commodities. It also provides logistics and markets for these commodities. Its operations have subsequently extended into other Australian states by amalgamations with other grain handling operations, as well as its expansion into North America and Europe.
“Favourable conditions in the Agribusiness segment are continuing to support earnings,” Michael said.
“Recent market weakness has made the shares look cheap and this means that GNC is a stock worth considering.
“The chart also has some solid momentum behind it.
“Twelve months ago we saw GNC break out of a multi-year base from levels under $5.
“The stock has been in a solid uptrend since then.
“Currently we have a situation where it peaked at the start of May and then eased back in a bullish flag (diagonal blue lines).
“The break higher last week was a sign that it wants to continue the uptrend.
“However, market weakness may see it pull back in the next few days.
“If it can come back near support at $9.50, then that would be the ideal buy zone as GNC is expected to then continue onwards with its long-term uptrend,” Michael concluded.
Graincorp Limited (GNC)
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