Seeking Alpha

Shares of Terra Nitrogen (TNH -11.2%) sink for the 2nd straight day, falling much harder than...

Shares of Terra Nitrogen (TNH -11.2%) sink for the 2nd straight day, falling much harder than other fertilizer stocks. The enticing dividend yield of 9.9% could be a trap, given the company has already reduced its payout to $3.75 from $4.84 earlier this year.
Comments (8)
  • sorry, but that doesn't make any sense . . . the previous two dividends were less than $2.00 each. what else is driving this stock down?
    21 Sep 2011, 03:23 PM Reply Like
  • Down even more. This pig needs to go sub 130 before it gets interesting again.
    21 Sep 2011, 03:23 PM Reply Like
  • Yep...around about $110-115.
    21 Sep 2011, 03:37 PM Reply Like
  • Last 8 dividends paid by TNH were:
    $3.75
    $4.84
    $1.36
    $1.40
    $2.36
    $1.25
    $1.63
    $2.22

     

    I don't think the sell-off is due to a cut in the dividend since that happens regularly with TNH and most every other company of this type that deals in commodities which fluctuate in price regularly and sometimes violently. I think the only "trap" here is the one that blurb writers fall into when they try to write blurbs about companies they're not familiar with.

     

    Disclosure: long TNH
    21 Sep 2011, 03:44 PM Reply Like
  • Wyatt can you explain what you mean about your comment on TNH?
    Much oblige.
    21 Sep 2011, 03:55 PM Reply Like
  • 'Down even more' means down over 18% compared to this snippet of 'down 11%'. As for the rest, it was patently obvious this thing got way ahead of itself.
    21 Sep 2011, 04:13 PM Reply Like
  • Thanks Wyatt. I think a good entry with TNH would be 125-130. You are right in saying it got way ahead of itself. I did lose a lot recently with TNH. Its a good lesson and one I won't make in the future.
    22 Sep 2011, 11:43 PM Reply Like
  • I lost a lot this week on TNH. All I know is that if I had seen this Seeking Alpha article on TNH on the 19th I would have sold ..

     

    http://seekingalpha.co...

     

    Now I clueless about TNH. Sell what I have left? Did anyone notice a 17% swing [low to high] on Thursday ... some day-trader fast profits no doubt.
    24 Sep 2011, 11:38 AM Reply Like
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