CF Industries (CF -0.8%) is resumed with a Sell rating at Goldman Sachs, which says nitrogen...


CF Industries (CF -0.8%) is resumed with a Sell rating at Goldman Sachs, which says nitrogen fundamentals have peaked: "We believe that the transformational impact of shale gas for North American nitrogen producers is now well understood and that 2012 marked a peak... We see 14% downside to 2013 consensus EPS from a combination of lower ammonia/urea prices and higher natural gas costs."

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Comments (6)
  • Michael Bryant
    , contributor
    Comments (6944) | Send Message
     
    Higher natural gas costs? And North Dakota is burning it.
    12 Dec 2012, 10:59 AM Reply Like
  • print185
    , contributor
    Comments (18) | Send Message
     
    Ammonia prices are stable and may even rise in 2013 and everyone knows about the overabundance of natural gas. Makes me wonder why these so-called analysts put out reports like this.
    12 Dec 2012, 11:32 AM Reply Like
  • hilti
    , contributor
    Comments (21) | Send Message
     
    Does Goldman have an agenda here ?
    12 Dec 2012, 11:37 AM Reply Like
  • siroccolee
    , contributor
    Comments (2) | Send Message
     
    The industry low PE is consistent with the risks that GS has sited. The huge expansion plans may be a strategy to offset expected lower margins in 2014. Once the expansion is online, it should be accretive to eps. Why else would they launch a 3.8 B investment?

     

    BTW, I wonder if the latest SEC filing is designed to thwart a takeover attempt.
    12 Dec 2012, 12:41 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (6944) | Send Message
     
    Natural gas will rise once (LNG)'s export terminals come online. Till then, it will likely stay at $3.
    12 Dec 2012, 04:44 PM Reply Like
  • Gary_S
    , contributor
    Comments (3) | Send Message
     
    The price for natural gas will stay low as long as it is "unintentionally" extracted while fracking for oil.
    13 Dec 2012, 08:44 AM Reply Like
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