I am getting tired of seeing this yo-yo. I thought the problem was the merger now today the dumb analyst of BoA downgraded CF?? I will increase my position as soon as the stock gets a little bit more stable
Why panic? It is up 20% ytd with a yield of 20%. I guess there's some margin for a correction after such a run!
I do hope they'll say something positive. Anyway the problem is OCI. Look at the chart of OCI and CF after the merger has been announced. The stocks became almost perfectly correlated and they started going into the abyss. I do not even understand how on earth they announced a merger without giving any detail. Months passed and still nothing.
Today again....i thought not to see levels below $30 this year again...to cut the story short I totally missed the rally in stocks from mid February thanks to this and pharma. Congrats
The adjusted number was $0.40 ($0.11 plus $0.06 of gas derivatives, plus $0.06 of transaction costs, plus $0.04 of expansion project expenses, less $0.01 gain of foreign currency, plus $0.14 loss of foreign currency)
Second, there are too many moving parts to judge the stock based on last quarter's result.
Last but not least the expected p/e of 13x is not high at all.
The problem is always the OCI transaction. The market did not like it at first and it likes it less now after the benefits of the tax inversion have been reduced to peanuts.
They should be paid only accordingly to the performance of the stock they recommend. But regarding regulations of Wall Street we are still in Gekko's land...
I do agree. Ag prices looks very interesting right now. I do not want to add risk in the same sector but I'm temped to buy physical corn and wheat. Anyway my real worry is the general market. It is due for a pause after the good run and this is a high-beta stock. Also all the fuss concerning tax inversions does not help even if the issue has been already addressed.
If you draw a chart you'll notice the correlation of CF with ag prices is virtually zero in the short and in the long term.
No news and with the general market in recovery it has already retraced lots of the gains. It should have been close to $38-39 instead it dropped a few bucks. It makes no sense. Since the deal with OCI has been announced the dynamics has become unpredictable and quite annoying.