Agrium Inc – My Pick in the Fertilizer Sector

Agrium

Agrium Inc (AGU) is a fertilizer giant that produces, markets, and distributes crop nutrients, crop protection products, seeds, and merchandise. The company operates in two segments: Retail and Wholesale. Agrium has a more diversified approach to the fertilizer industry, and offers products targeting the three main types – Nitrogen, Phosphate and Potash.

Agrium is the second largest company in the space, and is based in Canada, where half the world’s Potash reserves are to be found. However, it is focused on other fertilizers in the space as well – Nitrogen and Phosphate. This has allowed the company to grow revenues and navigate the waters well as Potash prices collapsed.

Is the stock a buy currently? Continue Reading Here >>

Potash Corp – Dirt Cheap & Ready to Grow

Potash Corp of Saskatchewan (POT) is a fertilizer giant that mines, produces and sells industrial and feed products worldwide. The company operates in three segments: Potash, Nitrogen, and Phosphate. Potash is a mined commodity and Potash Corp of Saskatchewan is well suited geographically to take advantage of the large reserves in Canada – which account for nearly 1/2 of the world’s reserves. The fall in commodity prices has taken a toll on PotashCorp’s stock price and yield hungry investors (currently yielding ~7%) have been backing up the truck. However, investors should remain diligent and not reach for yield as PotashCorp’s earnings are expected to stagnate – and the company looks towards M&A to grow its earnings.

Should you buy PotashCorp at this price? Continue Reading Here >>

 

Sector Overview – Fertilizer Companies

This article provides a sector overview of the Fertilizer Companies. Fertilizer companies are an excellent investment vehicle for investors looking in the agricultural space. The world population continues to grow and with that comes the added stress on resources such as arable land, water table, pests and land overuse. In order keep up with the demand of feeding the world, farmers have had to resort to using genetically modified crops coupled with liberal use of fertilizers.

My previous articles in the Sector Overview garnered plenty of interest as you readers found it valuable. So, without further ado, here’s a sector overview for the Fertilizer Companies.

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