Agrium (AGU.TO)

Disruption in supply from Ukraine and disturbing weather patterns will help this one. Their crown jewel is their retail outlet. A well balanced growth company in the right area.

Looks good right now. In a nice uptrend. Set $100 as a Stop. On the downside, the stock can go back down to a consolidation range of around $95. This will get some resistance at around $112.

(Top Pick Sep 12/13, Up 14.64%) Expanding potash mine in Saskatchewan. Retail business is going well although planting season is late this year. He is still comfortable with this one. Corn prices have rallied back and this stock moves with them. His gut feeling is that dividends won’t increase this year.

You could start nibbling here. $95/$96 area would be support. Start to buy it here in case it does not get down to $95. Prefers over POT-T. Nat Gas prices continuing to be high could be a negative.

(A Top Pick April 19/13. Up 11.8%.) He is quite happy with this. Would like to see them split the stock on a 4 for 1 basis rather than a 2-for-1. Well-run company.

It has to do with what’s going on in the Ukraine. They were the fourth largest exporter of corn in the world and about to jump to number 3. You could have a major disruption in corn and wheat and it could be beneficial to producers in other parts of the world.

The world needs fertilizer. They are well run. Good solid business. They made acquisitions in Australia that have not yet paid out. Increase in gas price was into the stock price. Thinks they will split the stock at some point in time.

(A Top Pick Jan 22/13. Down 7.77%.) Have 2 businesses. One is the nitrogen, phosphate and potash but the crown jewel is the retail side, selling things to farmers. Business is doing well and they hope to hit $1.3 billion EBITDA by 2015. Has a pretty good dividend in excess of 3%. He is bullish on this company.

(Market Call Minute) Buy on any pull back. A good business to be in.

A great company over the longer term. From a guidance and production perspective it is hard to know. He looks at it that AGU is the safest way to play the space just from the way they produce the materials. If you believe the commodities will go up then this is not the best one but otherwise it is.

(Top Pick Dec 17/12, Up 3.83%) Corn is a big demand factor and will continue. Loves this one. Potential rebound in Potash. On a pullback he might look at seed companies.

Likes the sector, but agriculture is boring. What we really need are some better catalysts. There are 5 billion people in the world and they all have to eat and this company produces a lot for that. At this level, it is a good entry point.

Potash pricing mechanism falling apart did not help the stock. However, this company has the advantage of potash being only a portion of their business. Have a big retail network they have built out as well as having all the other nutrients. Thinks this company will pay off over time. Clearly, potash is a question mark in the industry and there is more potash capacity coming. No near-term catalyst that he can point to at this time.

Of all of the fertilizers, this is the right one to be in. Just be mindful of the natural gas component. It could have a spike and that could put a negative bent on this in the short term. There is pricing pressure on the whole fertilizer business. He just wouldn’t play agriculture.

This has a great, long-term future based on the need to feed a huge number of new births in emerging markets. To feed them, you are going to need these agricultural companies. The surprising thing is how cyclical these things could be, which depends to some extent on price. Wait for some potential market weakness as he doesn’t see anything in the immediate future to put this stock up. His target price is $110.