5 April 2022

Welcome to a new issue of Stock Take. Let’s see what’s been going on in the share markets.

Market Summary

The Russo-Ukranian conflict has caused the price of many agricultural commodities to jump up recently. This can be seen in the graph below, which is of the Teucrium Agricultural Fund on the US market (black line) which has performed much better than the S&P500 Index (gold line).

However, inflation in this sector has been rampant for quite some time as poor growing conditions in some parts of the world and supply chain bottlenecks are causing supply issues. There appears to be little chance of a rapid decline in agricultural input costs or rapid increase of food output, so it appears likely that prices will continue to rise for some time.

Investors should look to increase their exposure to companies in the food and agriculture sectors.

Tip of the Week

This week’s tip of the week is for a NZX-listed producer of end-to-end solutions for customers in vertical industries. The company is recovering after a sustained decline and its price appears reasonable relative to its prospects.

See the tip here.

We’ve issued two tips so far this week, based on the company’s potential growth (or lack of it). First, we see a positive outlook for ikeGPS‘s services due to growing customer demand, and are cautious of the lack of potential growth for Emeco Holdings due to its share price trading sideways for some time.

Top Tips

Here are two of our best performing energy and utility companies over the past three months, plus one where we didn’t get it quite right but issued a stop loss recommendation to help investors mitigate the impact of the price reduction.

See the performance of all tips here.

NB: These are examples of just some of Stockfox trading recommendations. They are not a reflection of the success of all Stockfox tips, nor are they necessarily an indication of the success of any future Stockfox tips. If you act on our advice, there is no guarantee as to the repayment of your investment or any particular rate of return.