Origin Agritech Ltd. (NASDAQ:SEED)
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A Chinese producer and distributor of hybrid crop seeds, primarily corn, rice, cotton, and canola.
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A Chinese producer and distributor of hybrid crop seeds, primarily corn, rice, cotton, and canola.
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China is increasing their agricultural programs, SEED will benefit.
Recent activity suggests that Archer Daniels (ADM) and Monsanto (MON) are eyeing Origin Agritech (SEED) for a potential takeover bid. Both ADM and MON have been hoping to tap the vast Chinese market for some time now. Reports indicate that ADM and MON were both in the "courting process" in late November 2009 but temporarily abandoned those efforts after after SEED's stock price spiked from $5.00 per share to over $14.00 practically overnight.
Reports indicate that negotiations between ADM, MON and SEED have recently resumed again in earnest. Although company officials have remained tight-lipped, unnamed high level sources indicate an announcement could take place within the next several weeks since it now appears that SEED's stock price has now stablized after a relatively sharp decline in it's stock price within the last several weeks.
High level reports further suggest that all three companies now feel that $9.00 a share is a more realistic place to start the bidding process. The parties also feel that the recent spot sale of 350,000 tonnes of potash by Canadian firm Canpotex to Sinofert Holdings Limited may also affect SEED's stock given the close inter-connection between these two commodities and want to fast track negotiations.
This may be the entry point for this stock before the bidding war starts. If the stock drops any lower, SEED most likely will wait it out. If the stock moves too far above $9.00, ADM and MON may pass. Either way, the stock it priced too reasonably not to take it around the block block for a spin.
I keep buying this stock, everytime it goes below 10.00 a share. Whether a take over is in the works, or just making a few bucks on even a 50cent move. I take my profits and move on. I buy again under 10.00 all the time or even if it goes lower. I will buy more of this stock. I do buy large amounts minimun of 5,000 shares at a time. I can't loose with seed in the long run.