Closing my position in Gladstone Land (LAND)
Not a sell recommendation but just wanted to let you all know that I've sold my Gladstone Land position. I'll leave the trade open here since there's nothing wrong with the company and as I've mentioned in the buy recommendation, value stocks require patience.
Why did I sell? Did I run out of patience?
Not at all. I'm just heavily long corn and fertilizers, which I believe have more imminent upside, and I need to free up some cash for other buys. This is also why I didn't bother re-entering Archer-Daniels Midland (ADM).
Note the collapse in band width. Low volatility leads to high volatility, and it's only a matter of time before the stock bottoms and turns. I expect the entire agriculture space to re-rate when that happens, so I'll be happy even if I miss out on a move in LAND.
If you're hesitant to trade futures, consider buying Farmland Partners (FPI), another agri REIT.
Farmland Partners Inc. is an internally managed real estate company that owns and seeks to acquire high-quality North American farmland and makes loans to farmers secured by farm real estate. As of December 31, 2023, the Company owns and/or manages approximately 171,100 acres in 16 states, including Arkansas, California, Colorado, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. In addition, the Company owns land and buildings for four agriculture equipment dealerships in Ohio leased to Ag Pro under the John Deere brand. The Company has approximately 26 crop types and over 100 tenants.
A third option to consider is Adecoagro (AGRO), a farming and food processing company based in Argentina. The stock should benefit from increasing investor interest in Argentina and rising food prices. The company also grows sugarcane and converts it into ethanol - the main reason I got into the corn trade.
Good Trading!
Kashyap