Back to top

Analyst Blog

S&W Seed: Adding more acres in the Imperial Valley. Plenty of cash left to buy more land.

SANW

 ZacksTrade Now

S&W Seed: Adding more acres in the Imperial Valley. Plenty of cash left to buy more land.

By Ian Gilson, CFA

On February  21, 2013 S&W Seed (NasdaqCM:(SANW)) announced that it has acquired 114 acres in Calipatria in the Imperial Valley California, where is already has significant acreage. The cost was $830,000 or $7,281 an acre.

This purchase moves S&W Seed slightly closer to the target production of 10 million pounds of seed annually. This would require access to about 15,000 acres under high yield alfalfa cultivation, either owned, leased or under contract. The company currently has seeds from about 11,000 acres. To acquire 4,000 acres at $7,500 an acre would cost about $30 million, somewhat more than the current assets on the balance sheet.

An acre of productive land under cultivation with S&W Seed's high yield seed could generate about $3,500 worth of seed. With a gross profit margin of 35%, that is $1,225, it would take 6 years to pay-back the purchase price.
 

For additional research on small-cap stocks, please visit scr.zacks.com.

To become a subscriber to Zacks SCR and receive SCR blogs and research reports emailed directly to your inbox, please visit our Subscribe page.

 

 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%