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Asian Citrus - China inflation firms orange prices

February 2010

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • ACHL
  • Price:
  • 56p
With the shares riding to a new high of 56p, a company spokesman kindly pointed out that food prices in China have been rocketing, with prices for popular vegetables such as cabbage rising by 50% over the year.  Against that backdrop, broker Seymour Pierce notes that orange prices are rising too - which is good for Asian Citrus. Of course, some of the company's sales to supermarkets are on fixed price contracts but other elements are benefiting from prices 3-4% higher. All that falling nicely to the bottom line. Nevertheless, the broker has left its forecast unchanged but set a 70p target price. Keep holding. ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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