NAGARJUNA FERTILIZER (35.65) The weekly chart suggest an upside in the stock with a possible 1st target of 45 and a 2nd target of 54 with a stop loss of 31 (for traders).
Indian Fertilizer Sector -- FITCHGovt will continue to drive the fertilizer sector; with its control over existing and new capacity, import quantity, retail pricing, distribution, inputs, subsidy and key manufacturing entities.
Congratulations to those who held the right fertilizer stock - Terra Industries (TRA) received a 25% premium offer by our old friend (and once top holding) CF Industries (CF). Both are heavy into the nitrogen fertilizer niche - which is the least attractive due to the lowest barriers to entry (in 5 years there will be a nitrogen fertilizer plant on every corner in China), but it's nice to see this sort of M&A activity.
Global X Fertilizers/Potash ETF (SOIL) began trading last Thursday (5/26/11), as the first ETF targeting fertilizer producers. This narrow subindustry within the agricultural/commodity sector has attracted significant investor attention. The past four years brought a boom, a bust, and then another boom for the group.
The underlying Solactive Global Fertilizer/Potash Index tracks the stock price movements of companies active in the fertilizer industry. Components are weighted by free float market capitalization, and then capped at 4.75% as of each semiannual rebalancing.
I was trolling around and stumbled across the PowerShares Global Agriculture Fund (PAGG) and one of the holdings is a company called Taiwan Fertilizer which is on the chart in blue.
The fertilizer names have been much weaker than the commodity space as a whole... today they are green in a sea of red on a Russian price increase, but really Potash (POT) just warned of yet another production cut just 2 weeks ago. [Jun 17, 2009: Potash with Another Production Cut Hammering Fertilizer Names] We have short attention spans.
Potash Corp. of Saskatchewan (NYSE: POT) is seeing a recovery this morning. The potash and fertilizer giant posted earnings at $3.93 EPS vs. $3.57 estimates on a 136% revenue gain.
I've held 4 fertilizer positions but as I've been saying in this market it is not about stock selection but sector selection. So creating a basket in commodities is proving useless. Hence I am going to close out the last tiny part of the Intrepid Potash (IPI) position, not for any reason specific to Intrepid but no reason to have 4 stocks in the sector, when 3 will do the trick. We only had 10 shares left as this was a "holding" position waiting for better days for the sector, so it's not much of a sale and it further reduces our total holdings.
