Chris Damas
Contrarian, newsletter provider, commodities, industrials

Terra Nitrogen Swoons - Should You Buy It Here?

Terra Nitrogen Company, L.P. (NYSE:TNH) units finally cracked, down over 20% during the past three trading days. Should you buy it here?

My valuation suggests the units, notoriously volatile and probably oversold and due for a bounce, may still settle out lower for 2014.

(click to enlarge)

Terra Nitrogen units, which own an interest in a 2.4 million ton per year nitrogen fertilizer and ammonia plant at Verdegris, OK, defied gravity even as benchmark prices for its two main commodities, anhydrous ammonia and UAN (Urea Ammonium Nitrate) solution, fell during 2013.

Unit prices of comparable US nitrogen MLP's Rentech Nitrogen (NYSE:RNF) and CVR Partners (NYSE:UAN) fell during most of 2013, but TNH had stayed...

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