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Old 03-08-2009, 04:09 PM   #14
pepper24
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Join Date: Oct 2005
Location: Calgary, AB
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[quote=macker;1706823]
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Originally Posted by pepper24 View Post
The potash companies are interesting but still too expensive in my books. If AGU gets back to the low 30's I'd buy some shares.

AGU has a PE ratio of 3.77....I picked this one up in December for $31 and won't sell it til it doubles or I get stopped out but I am confident that it will double sometime in the next year. Look at the droughts in Australia, China, South America etc....there will be a lot of nitrogen based fertilizers used this year!...On February 25, 2009 AGU bid $3.6 Billion to take out CF industries. How many other companies are able to make aggressive take outs in this environment. The food/fertilizer area is a growth area for the next 5-20 years. One stock that you really should be able to buy and hold. I like AGU more than POT as AGU is under the instituional radar for the most part and besides that it is based right here in Calgary. A great company that offers great value even at $40.
What I meant by expensive I am thinking that potash prices will go down not referring to AGU's cheap P/E ratio, so I think that I could pick up AGU at a better price. I wish I was in at $31 like you but would get back in at around $35 or less.
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