The S&P trades at about 18 times backward earnings. AGU trades between 8-9 times earnings even with raised dividends and stock buybacks. If management is so brilliant, why does the market view them with such a jaundiced eye? My surmise is that they see weak margins and no serious growth going forward. Otherwise, this stock would be moving much higher and staying there. A stock which can't move in a market like this one is a big time laggard but all I hear from you is cheerleading.
What you just profiled is a massively under priced, highly diversified agriculture company dependent on humans continued need to eat.
Sentiment: Strong Buy
So that is your explanation for why AGU massively underperforms the market in terms of how the stock is regarded; namely, that investors, analysts, fund managers, etc. do not know how to evaluate quality. I will give you this. It is an answer. As you can tell from my earlier comment though, I prefer to ascribe rational behavior to everyone in the marketplace rather than just write them all off as incompetents. I agree with you that this is a diamond in the rough. But it will take some decent jewelers to make it readily visible. And I don't see them at work currently.
It is about time. With the yield now over 3%, this stock might start to get a little more respect. Hopefully this won't be the last of the dividend bumps.
Agrium's Q3 outlook disappoints, says BMO Capital
BMO Capital said Agriums increased 50% dividend was offset by its negative Q3 outlook, implying EPS of 81c vs consensus of $1.31
Sentiment: Strong Sell
So AGU is going to have a weak Q3. Anybody could have figured that out without hearing the company validate the point today. That your recommendation is "strong sell" indicates what kind of investor you are which is to say that all you care about is today's story. If the company comes out and tells us that Q4 is going to be strong and better than expected, are you then going to express a "strong buy" sentiment? Although I have my qualms about how AGU is being run, it is probably going to improve as the years go by. And in the meantime, those of us with longer term horizons than you will continue to pocket ever increasing dividends while we wait.
Undervalued because 1) it's a commodity stock, 2) mgmt has shown that they only care about retaining their jobs, 3) the Canadian discount. Stocks from Canada have dubious reputations whether they deserve it or not. I think after a couple of high profile government interferences, the global investment community is wary of their stock market that continues to get smaller and smaller.
Potash Corp. likely to issue profit warning StarPhoenix
Now that Mosaic and Agrium have both put their bad news out, analysts expect Potash Corp. of Saskatchewan Inc. will be next. "It's a safe assumption that they ...
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Chinese potash investment hits Israel Chemicals Globes
Chinese potash investment hits Israel Chemicals ... TSX: AGU), and Potash Corporation of Saskatchewan Inc. (NYSE; TSX: POT), which owns a stake in Israel ...
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I was right.
The truth hurts sometimes.
Stick you head in the sand if you wish.
You say you know what kind of trader I am. I am a trader, not investor, I look for opportunities both up and down.
This had a strong sell at the time of my original post. If you look at the graph from the point that I posted until now, you will see I did you a favor and was right on the money.
If you have a long term thesis, you could have sold calls to protect your position or could have sold stock and bought more at a lower price.
To ignore the waves in the market is to miss out on great opportunities both long and short.
I wish you the best, but mostly wish you learn to keep an open mind.
I am not against the company, but felt it was overvalued yesterday based on professional analyst analysis.
A hot shot trader would have been out of this stock months ago when it was well north of $100. Since then it has only made money for shorts. Recommending a "sell" around now is pretty unimpressive. As the proverbial turtle in this race, I still expect to win big time.
Definitely puts more pressure on Canpotex to lower prices
@@@@China has bought a chunk of one of the world’s largest potash producers, giving the Asian country more control over what price it should pay for the fertilizer – a move that could drag down prices for the mineral and eat into profits for Canada’s potash companies.
Wow right back at you. Of course I read the article I posted a clip from. Did you? What in your view is good about this development?
collect the 75 cent usa dividend in light of the stock dropping tomorrow and more. huge crash for agu and pot tomorrow. pot is only up in light of the agu move today for the dividend. love it. $-)
google ... global potash demand collapse due to recession 9.25.2013 5:17 pm gmt wooeb news
Potash Price War To Pressure Profits Through 2014
ValueWalk - by Michael Ide - 41 minutes ago