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The Only Cheap Sector Left
It’s a tough time to be looking for contrarian opportunities.
Almost every sector has done exceptionally well.
Car rental companies have delivered 500%+ returns from their lows. Banks and real estate stocks just go higher and higher. Oil’s inching closer to $80 a barrel. Natural gas has recovered nicely from its summer beating.
Even long-time contrarian standbys like gold and silver stocks have, in many cases, bounced back to their 2008 highs.
The breadth of the rally has been exceptional. The run over the last six months has pushed the S&P 500 P/E ratio from below 15 in March to above…
18Oct2009 | Q1 Publishing | 0 comments | ContinuedThe Good and Bad of Fertilizer Stocks
It seems like it’s been years since CNN Money opined, “Who needs Google and Apple? Agriculture companies are the new ‘it’ stocks.” But it was just six months ago.
Since then agriculture stocks turned shooting stars to exploding supernovas. Leading the way down has been fertilizer stocks. Shares of former Wall Street and momentum chasing hedge fund darlings Potash Corp (POT:NYSE), Mosaic (MOS:NYSE), CF Industries (NYSE:CF), and Agrium (AGU:NYSE) have led the way down. And practically all of them have cut their production for 2009.
The sell-off has come from deleveraging hedge funds, mutual funds selling to meet redemptions, and the market realizing not…
6Jan2009 | Q1 Publishing | 0 comments | ContinuedGood News for Some Long-Term Potash Investors
By Andrew Mickey, Q1 Publishing
It’s been a wild year for fertilizer stocks. Many investors who have been loading up on agriculture stocks right along with the hedge and mutual funds have taken some big lumps over the past couple of months, but it looks like the panic selling period is behind us.
When overleveraged traders and hedge funds are forced to sell anything and everything, we’re all forced to relearn that fundamentals mean next to nothing in a bear market. But that could be slowly starting to change right now. And if it does, the long-term outlook for fertilizer and potash…
Mosaic misses the number
North American fertilizer company Mosaic Co said on Wednesday its fiscal first- quarter profit almost tripled, driven by a boom in the global agricultural sector and the soaring price of potash- and phosphate-based crop nutrients.
But the company’s shares plummeted more than 20 percent to $53.80 in trading after the closing bell because earnings fell short of Wall Street expectations.
The company also warned it planned to sharply reduce phosphate production over the next several months, due to high inventory levels.
Net income in the quarter ended Aug 31 was $1.18 billion, or $2.65 a share, up from a year-ago’s profit of $305.5…
2Oct2008 | The Real Deal | Comments Off | ContinuedAgriculture Supercycle Fertilizes Investor Profits
In a choppy market swirling with negative energy, wouldn’t it be nice to own a resource stock that keeps rising in the face of ALL bad news?
Welcome to the “agriculture super cycle†and the wild and whacky world of fertilizer.
To give you an idea how bullish the fertilizer industry is – since Jan 1, 2008 – while the S&P TSX composite index has decreased 4%, major fertilizer companies like Agrium [TSX:AGU], Mosaic [NYSE:MOS], Potash Corp [TSX:POT] and Kennecott [NYSE:RTP] have gained an average of 21%.
What are the fundamentals that go into creating this so called “super cycle�
Potash and phosphate fertilizer are mined…
14Mar2008 | Guy Bennett | Comments Off | Continued
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