KWS SAAT AG. is an independent, family-owned German company that focuses on plant breeding, with activities in about 70 countries. The product range includes seed varieties for sugar beet, corn, cereals, rapeseed and potatoes. Its main markets are in the temperate climate zones of Europe, North and South America as well as North Africa and Asia.

The company announced on February 24th its results for the sixth first month of fiscal year 2011/2012, ended on June 30th. Seed companies announced that sales grew, boosted by the strong development in wheat and corn business, 27% to 191.5 million euros. The operating result (EBIT) improved to -31.2 (previous year: -39.6) million euros. It should be noted that the actual sales activity in the main fields of maize and sugar until the spring starts. The revenue of the KWS Group achieved in the first fiscal half-year is always less than one-fifth of revenues. The result of the first half year is therefore mainly influenced by the costs.

According to the information required by the better than expected grain and corn business to adjust the revenue and earnings guidance for the KWS Group. The EBIT margin is expected to reach nearly 12%.

The current level is a very interesting entry point with a large progression margin. We can fix an objective on the consensus opinion at 171 EUR, up to the 170 EUR long-term resistance. Moving average 50 and 100 days are well oriented and will probably help the trend in the objective of a new upward trend.
A buying position could be engaged immediately due to the strong fundamentals and graphical configuration. A stop loss will be positioned at 155 EUR, below the 100-days moving average.