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TSE:AGU
Agrium (AGU.TO)
Financials 
Technical Analysis 0
HOLD
Likes their strategy of getting into the distribution chain. He sees no signs whatsoever that this fertilizer boom is going to change in the near term.
Duncan StewartOwned
chemicals
TOP PICK
Trading at 11X earnings. There is earnings growth. Would treat this as a core holding.
Jean-Francois TardifOwned
chemicals
BUY
Here will be no end in sight for the agriculture boom and for this company’s products.
David BaskinOwned
chemicals
TOP PICK
Phosphate will be a little quiet in the summer. Highly attractive at about 10X earnings for the growth you are getting.
Bruce Campbell (1)Owned
chemicals
BUY
Earthquake in China reduced capacity to create their own fertilizers. Bit of selloff because of short-term planting problems in the US where they had to switch from corn to other grains which doesn’t require as much fertilizer. Fundamental long-term story is very much intact. He would also write a $92 June call option giving $1.33 in premium.
Ken McCordOwned
chemicals
TOP PICK
A whole bunch of urea plants were knocked out of service because of the earthquake in China. Food is very, very tight in the world. He expects urea prices to accelerate.
Derek Webb, CFAOwned
chemicals
WAIT
Has had a huge run. There is a consistent message that it may not be as strong by the end of the year. The market has been pricing it up for perfection. He feels there will be a pullback in some of the commodity prices, which would be a more opportunistic time to step in. Good diversified business.
chemicals
DON'T BUY
Fertilizers are in a very interesting situation right now. Made huge long-term moves and very large short-term moves. Historically, the stock is very extended. Once a stock is 70% to 100% from its 200 day moving average, it is looking for a significant short-term decline. This is hanging in close to its high, which is a positive but a lot of the volume has been on the down side in the group since they peaked a couple of weeks ago. Very high risk right now.
chemicals
BUY
A great stock in a great sector. There are a lot of very positive fundamental trends. Had a very steep run from the beginning of April and recently pulled back about a third. That is about the right range for a pullback. Good buying opportunity right now. Start reducing your position if it drops below $75.
chemicals
PARTIAL BUY
Potash has had rampant speculation over and above the basic investment demand. Changes in diets in emerging markets will mean a long, steadily rising demand for high-protein food. This is one of the leaders in the area. Start nibbling and average down. At $75, he could see a $25 upside.
Peter BriegerOwned
chemicals
DON'T BUY
Agriculture stocks are up tremendously over the last year. Have been strong underpinnings of demand but like a lot of stocks that get caught up in investor euphoria, they are priced for perfection. Earnings are expected to be over $4 but that is at peak prices. Still at about 20X earnings. Would look at it seriously if it pulled back 20%.
chemicals
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