Unconventional Capital Wisdom
Value, long-term horizon, worldly wisdom, growth at reasonable price

Potential Fertilizer Sale Could Provide Ignition For Incitec Pivot's Shares To Rise

(Shares are traded in Australia under the ticker IPL.ASX and over the counter in the US under the ticker ICPVY. Be aware that over the counter shares have limited trading volume.)

Executive Summary

  • Incitec Pivot has industry leading positions in each segment.
  • Management has been wisely focusing their investment dollars on the higher margin and strategic explosives market in the US and Asia through their Dyno Nobel subsidiary.
  • Sale of fertilizer unit could act as a catalyst in unlocking value over the short to medium term.
  • Sum of the parts valuation indicates the fertilizer operations could be worth ~$2.1 billion and the explosives operations would be worth $5.1 billion.
    A few recent unintended plant production problems and lower fertilizer prices...
Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
  • Access Top Ideas, chosen by Seeking Alpha’s editors
  • Filter long and short ideas by market cap and sector
  • Get Coverage of over 5,000 stocks, many of which have little or no coverage elsewhere
"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
100% Satisfaction Guaranteed
Money back guarantee. Seeking Alpha PRO members receive a no-questions-asked refund for membership on months paid and not used. Details