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...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details