AGT is the world’s largest trader of pulse crops and this growth have extended the opportunities for the company. AGT was considering to diversify its business by expanding its non-core activities. AGT due to its dominance in the industry could embrace the opportunity of expanding its value chain, while on the other hand, the company also wanted to enter into a segment that has intense competition and already at maturity level.
This case demonstrates these two different alternatives that Alliance Grain Trader Inc. (AGT) had, but whatever the track company selects, a stock market analyst, who holds the funds of AGT, would have to determine that whether he should continue to hold AGT stock or should sell it, in consideration of these two alternatives?