CF Industries (CF) -4.1% premarket after Dahlman Rose downgrades shares to Sell from Hold,...


CF Industries (CF) -4.1% premarket after Dahlman Rose downgrades shares to Sell from Hold, citing the potential for significantly reduced fertilizer prices from an increasingly likely large corn crop. The firm also cuts CVR Partners (UAN -1.7%) to Sell from Hold and Rentech Nitrogen (RNF -2.1%) to Hold from Buy.

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Comments (5)
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
     
    Maybe I'm just having a bad math day (a fairly frequent thing), but doesn't having a lot more acreage planted in corn require *more* fertilizer than having less acreage planted in corn does? As in increasing demand for fertilizer? IF - and that's always a huge word in farming - IF that large corn crop actually makes it mostly intact to harvest, then yeah, maybe decreased demand for fertilizer next growing season, but for this one?
    9 May 2012, 09:10 AM Reply Like
  • chop701
    , contributor
    Comments (2) | Send Message
     
    Three fertilizer firms; two from hold to sell, one from hold to buy. Can someone please explain why the difference?
    9 May 2012, 09:58 AM Reply Like
  • BillP02
    , contributor
    Comments (7) | Send Message
     
    They actually took RNF from buy to hold, looks to me like they just wanted a "one step" downgrade.
    9 May 2012, 09:46 PM Reply Like
  • bigazul
    , contributor
    Comments (1073) | Send Message
     
    I always love the downgrade that comes after the fall.
    9 May 2012, 10:58 AM Reply Like
  • rhoughton
    , contributor
    Comments (17) | Send Message
     
    David - you raised a very good point. In fact, a month or two back I read an article that the REASON to buy UAN/RNF was BECAUSE the Dept .of Ag. was predicting a BIG corn crop this year. Go figure.

     

    The real reason is that Dahlman months ago put all their investors into these stocks, and they needed a reason to sell and take profits to generate fees. The thinking is "you don't make money with static positions." Just think, now they can take all those dollars from the sell side and put it into a new buy recommendation.
    9 May 2012, 02:51 PM Reply Like
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