Alexander77

The Agriculture Boom Goes Bust

100% percent right, I think stocks with inelastic demand in what we need in these kind of markets



On Jul 22 10:02 PM Rocknrollleg end193 wrote:

> Look at what you wrote here, Andrew:
>
> "It’s simple economics. Fertilizer prices are not inelastic. High
> prices are reducing total fertilizer use around the world. We could
> see a big impact on reduced consumption when the Q2 numbers come
> out in the next few days."
>
> Wrong. Fertilizer prices ARE relatively inelastic. As long as there's
> a strong demand for food, farmers are gonna try and grow it. In fact,
> the precise reason for the recent spike in fertilizer prices is BECAUSE
> of the ever-increasing world food demand. There's a pretty direct
> correlation between fertilizer prices and food prices, because as
> DeltaXray7 wisely said, "If farmers want good yields per acre then
> they have to fertilze [sic]."

The Agriculture Boom Goes Bust

I bought AGU I think it is a steal with its excellent earnings and prospects. The market has not fully valued this stock


On Jul 23 08:40 AM andyn wrote:

> Even with all these stock increases, forward P/E for AGU remains
> around 11... and remember they have already pre-announced an increase
> in earnings and the Indian/Chinese contracts are up for re-negotiation.
> This stock might explode to the upside if they guide further higher.
> Already the stock has retraced back from 110 to 95. Buy now and hang
> on atleast until end of the year.