Canada markets closed

Argan, Inc. (AGX)

NYSE - NYSE Delayed Price. Currency in USD
Add to watchlist
43.99-0.02 (-0.05%)
At close: 4:00PM EDT
Sign in to post a message.
  • J
    Jordan
    $AGX.V conversation
    My favourite thing about $AGX is that it's in PRODUCTION! Recent news release updated on their progress this year.

    - Completed a 4,000m infill drill program at their Tangana Mine (4.8M tonnes of inferred resource grading 116g/t Ag)
    - Maria Luz has reported an amazing 496g/t Ag grade in 195k tonnes of inferred resources
    - Update on revenue: $6.5M YTD in concentrate sales! Rarely any other junior miners can produce this early on; as production ramps up, I can only expect the revenue numbers to jump higher over the last half of this year.
    - More revenue generated = more money going towards development, and less money is taken out in loans, financing, and debt

    So with $6.5M in YTD sales and expanding production capabilities I can only expect even more revenue growth for the last half of the year. All I can say is that this is extremely undervalued at these levels.
  • J
    Joseph
    This might be an opportunistic level to buy more shares of Argan.
    The closer the stick gets to $30, the more and more margin of safety you get as the company has $30/share in cash with no debt. Compelling risk/reward setup.
  • L
    Luke
    $AGX.V conversation
    Check out this great interview with the executive chairman of $AGX Luis Zapata. The interview touches on

    - Silver prices
    - Peruvian politics (how it effects $AGX)
    - Expanding a producing silver mine
    - Building the first majestic in Peru

    Exciting things to hear and worth checking out to catch up on $AGX

    Currently up 1.3% , MC is $44.83M.

    Video here
    https://www.youtube.com/watch?v=s--2m8bEfbk
    The Next Major Silver Producer in South America - Silver X
    www.youtube.com
  • J
    Joseph
    I'm hoping the AI bots are reading these promotional posts for "AGX.V." Maybe we can get an accidental pop that way. :)
  • M
    Matty
    $AGX.V conversation
    $AGX resumed trading last Monday after a successful merger! Their processing facility is being ramped up to produce 2.3M oz of silver/yr by the end of next year. Led by a highly experienced leadership team with over $3.2B of shareholder value created by the team over the last 13 years, their lead advisor Paul Matysek, has sold 5 publicly listed exploration and development companies totaling over $2B. They have 73,000m of drilling planned, a tight share structure with strong insider support, and $12.2M in cash to fund development and exploration plans.
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • J
    Joseph
    19% gross margin on $126 in rev
    Argan continues to operate and execute in a sober manner.
    Healthy balance sheet with green projects coming into the backlog.
  • L
    Luke
    $AGX.V conversation
    Check out this awesome video/interview with CEO of $AGX $AGX.v Jose M Garcia. He goes through $AGX ‘s investor deck touching on

    Experience of the $AGX executive team
    Current portfolio + plans for the future
    Current drilling structure and drilling plans for rest of 2021
    Etc.

    As well, linked below is a quick introduction of the company.

    Check it out
    https://www.youtube.com/watch?v=9tihTFBiTe4

    Intro video
    https://www.youtube.com/watch?v=zsWLLbiN8oQ
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • L
    Luke
    $AGX.V conversation
    In case you missed it check out this great video/interview with the CEO of $AGX Jose M Garcia.

    Touches on

    Current Portfolio Plans
    Current drilling structure and drilling plans for rest of 2021
    Peru’s premier silver district
    Etc.

    Plus check out this quick intro video on $AGX

    Current MC is $20.25M.

    Interview
    https://www.youtube.com/watch?v=9tihTFBiTe4

    Intro Vid
    https://www.youtube.com/watch?v=zsWLLbiN8oQ
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • J
    Jeff
    This stock has been dead money for 3 years. I don’t get it. No debt, $30 share in cash and a billion dollar backlog. Why does the steer hate AGX?
  • L
    Luke
    $AGX.V conversation
    In case you missed it, check out this video of $AGX $AGX.v CEO Jose M Garcia breaking down $AGX ‘s investor presentation.

    He touches on

    $AGX ‘s executive team and their past success
    Current portfolio and plans for the future
    Current drilling structure and drilling plans for rest of 2021
    Etc.

    Worth checking out and a great way to get familiar with Silver X.

    Check it out
    https://www.youtube.com/watch?v=9tihTFBiTe4

    Quick Vid on Silver X
    https://www.youtube.com/watch?v=zsWLLbiN8oQ
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • H
    Henry
    $WRPSF conversation
    Silver X $AGX resumes trading on June 29 - $43M FD market cap, low debt, growth focused, and aggressive leadership team. It will be difficult for this stock to drop in value if silver stays above $20. Watch their presentation: https://www.youtube.com/watch?v=9tihTFBiTe4
    Silver X | Red Cloud 2021 Summer Silver Conference
    www.youtube.com
  • H
    Henry
    $AGX.V conversation
    Meet Silver X CEO, José M. García - learn more on why $AGX $AGX.v $WRPSF this team is a solid entry into the lucrative silver industry expanding in Latin America with a district size development in Peru. https://youtu.be/zsWLLbiN8oQ
    Silver X | José M. García, CEO
    www.youtube.com
  • J
    Joseph
    The company still has almost $30 cash/share. Business conditions appear to be improving. Matter of time.
  • J
    Joseph
    As a value investor, I've found that sometimes it takes longer than you want for a thesis to play out. However, I've noticed that around the time I begin to doubt my conviction or get fatigued by the delay, the inflection point happens. The point is, I'm buying heavily now at these levels.

    Here's something to consider: the low for this stock was $29.91. That occurred in March when the world was ending. Today, AGX has $28 of CASH per share. So you would have been pay a buck for all future income streams. So, I feel comfortable penciling in $30 as the max draw down on the stock.

    If you back out the cash, you're now paying about $18/share for the business. I think the business will easily book between $2.00 - $3.00/share of Net Income for the next few years....even if they do not grow the backlog. Hopefully, we'll get some positive news regarding new projects. In the meantime, we'll be paid to wait.

    I'm allocating cash to average down into another 6,000 shares starting today.
  • J
    Joseph
    I like to invest in cash heavy, simple balance sheets. This strategy hasn't been optimal lately, but I'll stick to it.

    When I think about the operations of Argan, I put it into a category I call "ESG adapters." Loosely stated, these are companies who are having to shift their strategy or product mix to meet the market/policy demands around ESG. In Agran's case, they are a best-in-class EPC firm who will have to shift into green construction projects, while continuing to operate their traditional gas-fired business. I firmly believe they can do this.

    There are other companies I hold that are working through the same issue:

    Calm-Maine (CALM): shifting from caged egg production to cage-free,
    Altria (MO): shifting customers from smoking to non-combustibles,
    Exxon (XOM): building renewables alongside hydrocarbons

    The key is to pivot while continuing to dominate your traditional market. This is tricky and requires patience.
  • F
    Frank
    AGX beats on revenue ($116.459mm v $101.600mm) and EPS ($2.07 v $0.34). Cash is still strong and report says that they are expecting to start work on another $1.5 bln in projects in 2019. TTM EPS gives it a 10 P/E. TTM EPS x-cash gives it a 5 P/E. Expecting growth and higher prices!
  • J
    Joseph
    The Chickahominy project got approval to proceed from the Virginia DEQ. Final document in link.
    I'm not familiar with the process, but isn't this the main hurdle to overcome? Can we pencil in another ~$500 MM in backlog at this point. Or is this project still at major risk?

    https://www.deq.virginia.gov/Portals/0/DEQ/Air/Chickahominy_Power_Plant/Documents/52610_Chickahominy_Power_Station_final_issued_permit.pdf
  • J
    Joseph
    I'm back amigos....30 day period no the sidelines is complete.
    How're we feeling about AGX these days? We've made it back to pre-covid levels on the stock. YOY revenues ought to be impressive this quarter.
    Unless there's been serious impairment to the backlog, I'm still bullish.
    Side note: Saw a ton of volume earlier in the week. Can AGX repurchase it's shares leading into the earnings week?
  • M
    Matt
    Does anyone here see any threat to this stock from Coronavirus? Apart from the risk of short term construction delays, which I think are unlikely, I don’t see a scenario where the current project backlog and financial performance are affected by the same forces that are driving the market selloff. And I certainly don’t think it affects their ability to pick up new contracts longer term. Thoughts?
  • F
    Frank
    I am wondering if there is any color on AGX's upward daily price movement? The market is down 300 points today and AGX is up 0.46. Was there tax loss selling in December? Does anyone think that some of those sellers are getting back in now that the 30 day period is ending? Volume starts low but gets heavy later in the day. Are there any announcements coming from AGX? Either way I like the price action in a mixed market.