There's more to Yara International (OTCPK:YARIY)
than run-of-the-mill commodity fertilizers, but I have to wonder
whether the market is already sufficiently pricing in the advantages of
the company's increasing leverage to value-added and specialty products.
The ADRs have been quite strong over the past year (up about 29%) while
most fertilizer stocks have lagged the market, and up almost 20% over
the past three months despite very weak urea prices. I don't want to
undersell the company's ability to leverage lower input costs and
premiums for its nitrate and NK sales, but the valuation already appears
to factor in a pretty healthy recovery from this trough.
Please continue here:
Yara International Offers A Tricky Balance Of Quality And Value
Showing posts with label Mosiac. Show all posts
Showing posts with label Mosiac. Show all posts
Wednesday, June 25, 2014
Tuesday, January 7, 2014
Seeking Alpha: Allana Potash Offers Substantial Potential Rewards For Significant Risk
Junior gold miners are common enough and those investors who follow
the mining sector closely are probably familiar with other juniors in
minerals like copper. Junior potash miners are not nearly so common,
though, as potash mining has historically been dominated by the likes of
Potash Corp (POT), Uralkali, and Mosaic (MOS). Canada's Allana Potash (OTCPK:ALLRF)
(AAA.TO) is looking to shake that up a bit, though, as the company
hopes to move forward with a low-cost asset in northeastern Ethiopia.
I suspect that readers are bombarded with enough warnings about risk that they gradually become immune to them. I have to note, though, that Allana is a great deal riskier than average. This company's market cap is just over $100 million and the company is going to need to raise substantial sums of capital to turn its ambitions into reality. Although Allana's ADR shares carry the dreaded "F", the liquidity is actually pretty good (though still less than 20% of the Canadian shares).
Read the full article:
Allana Potash Offers Substantial Potential Rewards For Significant Risk
I suspect that readers are bombarded with enough warnings about risk that they gradually become immune to them. I have to note, though, that Allana is a great deal riskier than average. This company's market cap is just over $100 million and the company is going to need to raise substantial sums of capital to turn its ambitions into reality. Although Allana's ADR shares carry the dreaded "F", the liquidity is actually pretty good (though still less than 20% of the Canadian shares).
Read the full article:
Allana Potash Offers Substantial Potential Rewards For Significant Risk
Tuesday, February 22, 2011
Investopedia: Running Like A Deere
When crop prices are high, there is a go-to line-up of stocks for theme investors to play. Fertilizer names like Potash (NYSE:POT) and Mosiac (NYSE:MOS) usually catch a bid, as do seed companies like Syngenta (NYSE:SYT). And then there are the machinery companies - stocks like AGCO (Nasdaq:AGCO), CNH Global (NYSE:CNH) and the biggest of them all, Deere (NYSE:DE). Whether the logic always works out as expected (high crop prices produce more cash for farmers who can buy new equipment) or not, these have been bullish times for crops and bullish times for Deere's stock.
The Quarter That Was
Whether the byproduct of high crop prices, better credit access, more optimism among farmers, or some combination, Deere delivered another strong quarter. Revenue rose 30% this period to over $5.5 billion, with agriculture (and turf) up 21% and construction (and forestry) up 81% from a low base. Although that was a solid jump in sales, it was nevertheless below the average analyst estimate of $5.67 billion.
Like most heavy machinery manufacturers, Deere's business is more profitable when the factories have solid throughput. To that end, higher revenue helped enable improved gross margin (up about 150 basis points from last year). Deere's management also deserves praise for holding the line on operating expenses, as operating income more than doubled and the operating margin expanded by more the four points. As a result, though Deere came up short on revenue the company handily surpassed the average EPS estimate. (For more, see 4 Things to Know About Earnings Season.)
Please click below for the full piece:
http://stocks.investopedia.
The Quarter That Was
Whether the byproduct of high crop prices, better credit access, more optimism among farmers, or some combination, Deere delivered another strong quarter. Revenue rose 30% this period to over $5.5 billion, with agriculture (and turf) up 21% and construction (and forestry) up 81% from a low base. Although that was a solid jump in sales, it was nevertheless below the average analyst estimate of $5.67 billion.
Like most heavy machinery manufacturers, Deere's business is more profitable when the factories have solid throughput. To that end, higher revenue helped enable improved gross margin (up about 150 basis points from last year). Deere's management also deserves praise for holding the line on operating expenses, as operating income more than doubled and the operating margin expanded by more the four points. As a result, though Deere came up short on revenue the company handily surpassed the average EPS estimate. (For more, see 4 Things to Know About Earnings Season.)
Please click below for the full piece:
http://stocks.investopedia.
Thursday, August 19, 2010
Potash and BHP Billiton - Is This The Start Of The Next Leg Up?
The ag sector has been roiling ever since Potash (NYSE: POT) went public to scorn an unsolicited bid from global resources giant BHP Billiton (NYSE: BHP). The deal would have given Potash shareholders $130 per share in cash for their stakes in this leading fertilizer company, and it would have cost nearly $40 billion for the would-be Australian acquirer.
This battle is not over by a long shot, and it is fair to wonder whether this move really does confirm the next big move in the ag sector.
They Doth Protest Too Much
Of course, it was not enough for Potash to simply reject BHP politely and discreetly. Oh no - Potash management felt the need to fire off a broadside full of the sort of hyperbole that long-term investors have probably come to expect in these deals. Potash management essentially called the bid opportunistic and said that it failed to appreciate the company's "dynamic growth prospects". Given that Potash is a commodity company and prone to extreme cyclicality, that calls into question just precisely how the CEO defines "dynamic growth prospects".
To read the full piece, please continue on to:
http://stocks.investopedia.
This battle is not over by a long shot, and it is fair to wonder whether this move really does confirm the next big move in the ag sector.
They Doth Protest Too Much
Of course, it was not enough for Potash to simply reject BHP politely and discreetly. Oh no - Potash management felt the need to fire off a broadside full of the sort of hyperbole that long-term investors have probably come to expect in these deals. Potash management essentially called the bid opportunistic and said that it failed to appreciate the company's "dynamic growth prospects". Given that Potash is a commodity company and prone to extreme cyclicality, that calls into question just precisely how the CEO defines "dynamic growth prospects".
To read the full piece, please continue on to:
http://stocks.investopedia.
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