I've been asked by several readers to update my forecast for nitrogen fertilizer MLP, CVR Partners, L.P. (NYSE:UAN). So here it is.
We are mildly bullish short-term (next few months). Longer-term, that being two to three years, we think CVR Partners will face increased competition from large domestic nitrogen fertilizer expansions planned by CF Industries Holdings (NYSE:CF), and upstarts such as Iowa Fertilizer Company, the latter owned by Orascom N.V. (OTCQX:OCINY) and even Northern Plains Nitrogen, a farmer co-op led iniitiatve in North Dakota.
Back in August I wrote CVR Partners was seeing a soft second half and had experienced problems which reduced ammonia production. I predicted the units would decline, estimating fair value...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|