I have watched with interest as Australian Agricultural Company (AAC.ASX) has fallen from $3.50 to $2.50. At that level the stock is at an important support. But before recommending this stock, there is reason for thinking it will fall back to $2.00.Drought relief and stronger beef prices offer alot of upside from the $2.00 support, particularly as I expect that after the Nov'08 US presidential elections we will see a return to the 'strong USD' policy, or perhaps better stated 'stronger'. I think there are some austerity measures ahead for the USA. That means - higher taxes (or a return of the taxes previously lowered) and higher interest rates to encourage greater savings in the USA.
Andrew Sheldon www.sheldonthinks.com


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