Kaap Agri had its origins when a few farmers in the Swartland decided to jointly buy guano (bird manure) to use as fertilizer. They currently have more than 200 operating points that stretch over 95 towns. 5% of Kaap Agri shares have been issued to the Kaap Agri Employee and Farmworker Trust. The income beneficiaries are farm workers and employees, their families, and local communities. The Kaap Agri Academy in Porterville was established in 2008. It started off with a development programme for emerging farmers. This course, which is accredited by die AgriSETA, is annually attended by approximately 25 emerging farmers who are selected from more than 100 applications.  All the individuals attending the course have access to land and are already involved in farming. They reported their  6 months financial results for the period ending March 2018 as a 5.4% rise in revenue and their interim dividend increased by 8.8%. The group’s gross margin increased by 0.6% to 17.3%.

  • A possible double bottom (positive) caught the eye.
  • The resistance of line A and line B (R45-04) is holding the share back. Above these lines the double bottom can spark more upside which can take the share to R49-30 in time to come.
  • Below R38-80 the warning will be wiped off the table.
  • For traders – Buy above R45-04 but use R38-80 as stop loss to protect capital. The possible targets towards the top are R45-72, R46-32, R46-72, R47-23, R47-64, R48-10, R48-56 and R49-30.
  • For medium to long term investors – Nibble above R45-04 but use the same stop loss as given to traders above.

Let us know if there are any questions.

Frans & Christelle de Klerk