Numbers & Narratives – April 29, 2021

Numbers & Narratives – April 29, 2021

Quick collection of ag stock stats and stories

Numbers

Stocktwits momentum: Among agriculture stocks with more than 300 followers on Stocktwits, the 5 largest percentage increase in followers for the week of April 19, 2021 to April 26, 2021 were:

AppHarvest ($APPH): +2.5%

Global Cannabis Applications Corp. ($FUAPF): +1.9%

AGCO ($AGCO) +1.3%

22nd Century Group ($XXII): +1.2%

GreenGro Technologies ($GRNH): 1.2%

6: Number of times Tractor Supply Company ($TSCO) CEO used the company catchphrase “out here” within the 6 minutes he was speaking to CNBC “Mad Money” host Jim Cramer on Monday (see below.)

35: Deere ($DE) ranking in the April 25 Investor’s Business Daily IBD 50 weekly computer-generated list, falling 2 spots from the previous week. IBD’s technical analysis observed DE shares forming a flat base and maintained a suggested $392.52 entry point. DE closed at $379.80 yesterday (4/28/21.)

Narratives

AGCO beat-and-raise bullishness: This morning (4/29/21), AGCO ($AGCO) beat earnings estimates and raised guidance, as well as announced a variable special dividend of $4.00/share and raised quarterly dividend by 25%. “Increasing demand for commodities, driven by the growing world population, as well as rising emerging market protein consumption and biofuel use, are expected to support elevated farm income and healthy conditions in our industry,” the company said in its press release. Webcast audio and slides available here.

Tobacco breeding: 22nd Century Group ($XXII) is up 50.3% in the six sessions since last week’s Numbers & Narratives post regarding the Biden Administration’s rumored tobacco regulations. Shares jumped 14.5% yesterday (4/28/21) on a Washington Post report that the Biden administration will seek to ban menthol cigarettes. News reports emphasized that such a ban would take years to implement and that large tobacco companies would challenge the ban in court.

“Once in a generation” spending in ag cohort: Tractor Supply Company ($TSCO) CEO Hal Lawton’s commentary on the company’s Q1 2020 earnings call Thursday (4/22/21) was bullish on ag consumer spending, dubbing the moment “once in a generation.” Lawton said TSCO is “seeing growth in all our customer segments and across all value tiers of spending” with the fastest growth customer segment in the core farm and ranch business.  “This segment is very healthy as rural economies, for the most part, were less impacted by the pandemic and are recovering at a steeper and more robust rate.” (Earning call transcript via SeekingAlpha.) Lawton appeared on CNBC’s “Mad Money” with Jim Cramer Monday (4/26/21), placing particular emphasis on the company’s success in attracting millennial customers. TSCO shares are up 87.24% over the past 12 months, and up 34.16% in 2021 (as of 4/28/21 closing price.)

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