It was a good time to buy it before today’s 9% increase. The play is the growth in the Chinese fertilizer market. It’s an interesting company. Still a good entry point. Agrium owns 50-60% so could buy it to get into China.
Converted to a corp. They have been really coming out of the gate. 3 Business: Sodium Chloride; Construction Chemicals; and Propane. The first two are where the growth is. The payout ratio and yield is ok. It’s a prudent name to own I you think the construction business in the US will turn around. 11.6% sustainable.
From a credit perspective, the high yield bonds are now 3.5-4% so there is significant improvement in the credit risk. The expectation is that the US banks will improve their book values. They should re-instate the dividend by year-end.
Had a good run and in the process of re-calibrating as a company with the new management team. With new team, the stock is in the process of re-calibrating. Safe dividend payout. Cut down debt. Payout ratio looks sustainable.
Seen coal prices go up in China so expects them to start importing methanol and as they drive more cars, the fuel will require more methanol. It’s a play on oil and more so on terminal coal prices. Are increasing their production capacity in a rising price environment.
(Top Pick Sep 29/09, Up 7.2%) (Preferred A.)It’s in the conversion range right now. Likes the company. Margins of Corn Ethanol have been strong. Lot of cash in their balance sheet. 6.5% dividend. Safe as it come close to its conversion price.