Seeking Alpha: American Vanguard Should Reap A Better Multiple

American Vanguard (AVD) has long been a volatile small-cap stock. Some of that can be chalked up to the vagaries of the agricultural chemicals market, a business where the likes of FMC Corp. (FMC) have also had ample ups and downs. Some of it, too, can be attributed to the fact that investors in agricultural stocks often seem to look and think no further than the next harvest, so planting, weather, and harvest data can make these stocks move in the opposite direction of fundamentals.

To that end, I think it's worth checking out American Vanguard today. Although I do have some long-term concerns about the company's position vis a vis new GM crops that target lucrative parts of the company's business, I believe there's a very good chance that the stock will deliver stronger results in the short term as capacity upgrades and strong marketing support from partner Monsanto (MON) lead to much better herbicide and pesticide sales.

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American Vanguard Should Reap A Better Multiple