vadyaguy
I had bought AGU (Agrium) with the idea that it would do well in the months ahead. Instead, possibly but not necessarily because of the loss of the Egyptian contract, it has tanked. Does anyone have a take on this: any ideas?
I had bought AGU (Agrium) with the idea that it would do well in the months ahead. Instead, possibly but not necessarily because of the loss of the Egyptian contract, it has tanked. Does anyone have a take on this: any ideas?
Comments (1)
Hey Wade, All these ag companies dropped today. As corn,soybeans and all the other commodities drop,they drag the fertilizer stocks down too. I don't agree with this as these companies set a price and unless there's a huge shift up or down in production the price should stay constant. The media said a month or so ago that the corn crop and other grain crops were wiped out due to the flooding and as usual they were wrong. They are going to have a good crop. If I had to guess I would say that if the ethanol program is still operating as last year farmers and all the companies associated with the farmers will have a good year again. My advice is to hold your stock and if possible on these big pullbacks add a little more. It could be next week or next month but all these ag companies are going to be fine. A couple of my favorites are CF and TRA both similar to AGU and like TRAs net tripled last quarter and I see no reason for any change in sentiment. Don
Posted by shorty4407 | August 15, 2008 5:37 PM