An Australian agricultural stock to watch

CMC Markets

There are not many opportunities to invest directly in Australian agriculture via the share market. TFS Corp is one.

TFS Corporation (TFC.ASX)  an ASX 300 company that grows sandalwood trees in northern Australia. Sandalwood is used not only in perfumes and incense but also in pharmaceuticals. The main pharmaceutical application is in the treatment of skin diseases. TFS recently took a further step towards vertical integration with the acquisition of US pharmaceutical companies that are well advanced in formulation and commercialisation of various dermatology products.

This week, TFS has bounced off the support the of its March and April lows as well as its 40 week moving average around $1.60. If you are of a mind to hang out hoping for better prices, another possibility from a chart point of view might be the 61.8% Fibonacci retracement of the last leg up around $1.50

TFS Corp CFD Weekly Click to enlarge TFS Corp CFD Weekly
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