How’s your diet going? Chances are, if you’re observing an eating regime, that nuts are an important part of the program. Foods regularly go in and out of dietary fashion. Nuts are not only in fashion right now, Select Harvest’s (SHV) almonds, oats, dried fruits and seeds speak directly to aspiring Asian consumers and investors looking for agricultural exposures.

Given the merger and acquisition interest in groups like Graincorp and Bega Cheese, it’s surprising to find SHV trading around 12 times earnings. This looks cheap in a sector subject to takeovers. SHV paid 50 cents per share in dividends last year, albeit without franking, and consensus forecasts are for a further 12% increase in profitability over the next twelve months.

In other words, here is a stock trading at levels that could represent good value, in a sector where many investors are underweight, and may be subject to a takeover bids. The question is, why haven’t more investors diversified into SHV?

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Note the short term support around $11.10, and the longer term support around $10.50. A fall below $11.10 would be an "early warning" sign that investor interest is waning. However, while it remains above the level a test of the 2015 highs around $13.50 is possible.