It appears that his analysis is so shallow that he is just looking at the yahoo distribution rate. also motley fool seems to make the same mistake in an RNF article that mentions UAN. this is kind of scary and makes one wonder if the average analyist has a clue as you say. UAN's input costs are hedged, AG is predicting the biggest corn planting since 1936. Since corn takes a pound of nitrogen per bushel most farmers in Iowa are dumping up to 200 lb to the acre. I do not look for nitrogen prices to come down. UAN has projected 2.15-2.45 distribution. assume a $2 dist and investor interest level of 8%. This fixes the stock price at about $25 give or take depending on normal market fluxuation. Barring a hugh market selloff, and this could happen,For income investors I think that anything under $25 is a reasonable low risk buy here.
.50 move on Crammer effect. And he is clueless. All agriculture is correcting so who knows where the bottom is. Fed keeps printing... rinse and repeat. People have to eat. buying more on the way down and Im loading up heavy at 19.00-21.00
Thank you Cramer for your idiotic analysis that even my fifth grader knows is wrong. Now I just bought another 1,000 shares under $24. At the $2.45 distribution rate my 401K's largest holding will now yield a whopping 10.316% plus any appreciation in share price once these fools realize the yield is not 3-4%.