Agria Corporation (ADR) (NYSE:GRO) Shares Exploded While the Company Appointed a New Director
[[tagnumber 0]] [[tagnumber 1]] [[tagnumber 2]]Yesterday Agria Corporation (ADR) (NYSE:GRO) failed to break the resistance of the previous high reached in the preceding two trading sessions. The company announced this week the appointment of a new director to the board while last month it claimed to have reached two strategic alliances.[[tagnumber 1]] [[tagnumber 4]][[tagnumber 5]][[tagnumber 1]] [[tagnumber 2]]GRO closed Thursday session at $1.52 for a share with a 4.11% gain from the previous day close. The trading volume dropped sharply after it exploded earlier this week, however, technical indicators remain in a bullish position for today thus the stock could have another huge jump soon.[[tagnumber 1]] [[tagnumber 2]]On Monday, the company announced it has appointed Mr. Brent De Jong as executive director to GRO Board of Directors. It looks like to PR sounded to traders as it could open new growth opportunities as the newly appointed director is supposed to have expertize in private equity and investment banking.[[tagnumber 10]][[tagnumber 1]] [[tagnumber 2]]It is interesting that two announcements of strategic alliances of the company in May did not have the same effect on trading, even though GRO share price has started an uptrend at the end of February when the company filed its financial results for the last fiscal year.[[tagnumber 1]] [[tagnumber 2]]According to the report, operating profit and net profit were up 46% and 61% respectively, however, total revenue increased only 1.9%, to the largest extend due to a 19% increase in rural services. The balance sheet shows though that GRO is actually in urgent need of cash and that suggests dilution for shareholders as well as increase in borrowings.[[tagnumber 1]] [[tagnumber 2]] [[tagnumber 1]] [[tagnumber 2]]Cash flow data is not available but it would be interesting to check the source of cash before investing in the stock of the company.[[tagnumber 1]] [[tagnumber 0]] [[tagnumber 1]]
