Nutrien Ltd. (NTR-T)

World's largest ag-crop nutrient business. Vertically integrated. Believes prices for its input commodities have bottomed, supported by high and rising cash-crop prices. Farmers have to replace nutrients in soil, which was delayed while prices were so high. Trades at book value. Bounced off lows, but still sees upside. In his dividend growers mandate. Yield is 4%.

Does not own shares. Better options for commodity investors. Dividend is strong, but potash in abundance throughout the globe. Would prefer Teck Resources. 

Sounds counterintuitive, but WFG and trees are going to be beneficiaries. US still needs them, just going to pay higher prices.

GRT.UN is a good name. PKI works well here. Materials sector, with a name like NTR. 

There's even a part of the TSX that does well with a falling CAD, as earnings get amplified.

Farming has not been great for investments so profits from fertilizer businesses are down. However the cycle could change. Don't buy today except if you want the dividend - wait for the turn which should allow it to run for a while.

Weakness in potash prices, but demand starting to improve, especially in Brazil. Don't focus just on potash, remember its retail segment is the largest in the US with about 22% market share. Decent opportunity to add exposure.

Commodity index hasn't done well either, and NTR is somewhat correlated with that. Unperformed, but now forming a base. Not seeing a strong impetus for stock to increase. Commodities are taking a backseat to tech and growth.

Longer term, will be a fantastic play as fertilizer demand grows. But not now.

As the world urbanizes, there's less farmland. This name will benefit as the population grows in the decades ahead. On the cheap side. Missing earnings. Correcting from the Covid runup. Likes the value here and the risk/return. One of his bigger positions.

Large cost advantage due to Canadian base in potash. Big issue is volatility in a cyclical stock because of pricing of potash and nitrogen, which fluctuates a lot. Supply/demand is out of balance all the time. Volatility outweighs the story. Supply coming on globally, especially with BHP.

Close to a bottom, but too early still before an upturn. Swing factor for earnings will be commodity price for potash, and he doesn't see this coming back to sustained supply/demand balance in the medium term. BHP's new production will add ~10% more supply, keeping prices under pressure.

Long term, there's secular growth in the agriculture industry. Less arable land around the world, so farmers need more inputs for the land. Stock's fallen since 2022, 200-day MA has turned, and stock's below that. Commodity prices, such as for corn and soybeans, have fallen; not conducive to farmers spending on crops.

Commodities are super-cyclical, tend to move in 10-year cycles. Watch and wait for the turnaround.

Chart's downtrend has changed with the low being put in, and that's a place for him to hang his hat. Declining arable land around the world forces farmers to be more productive and use inputs. China and India are always looking for a decent supply for food. Yield is 4.3%.

Start your holding now for the next 4-5 years.

He just added more shares. Are still consolidating and have great vertical integration. Valuation is cheap, are buying back shares and are generating free cash flow. Though commodity prices are flat or bottoming, ag remains a good long-term story.

Recent downtrend not good for investors. Doesn't appear to have a bottom on the stock price. Would not invest at this time. Wait for stock to reach bottom. 

At depressed prices you could sell put options at a $60 price if looking to buy the stock below $60. In general the option market is now bigger than the stock market in the U.S. Banks go out and start buying medium and long term call options in depressed names and build their positions.

Long-term horizon. Very few providers. You're basing your investment decision on, in very simple terms, whether farmers are going to be using the product or not. If you get a year where there's no demand, you have to wait another year.

Supply/demand can swing wildly, as with any commodity. Too volatile for him, like catching a falling knife.