Bobco23

Two Reasons CF Looks Headed for Big Profits

Guys, back up the truck for any nitrogen fertilizer manufacturer. Natural gas represents up to 90% (check it out on the web) of the direct cost of nitrogen fertilizer production and the're giving natural gas away. Prices have come down but are not crashing. As a famer, I can tell you no farmer is going to let his invested capital sit idle. If prices fall, farmers will buy more to increase yield per acre owned (i.e., invested capital). Farming is a volume business and fertilizer drives volumes; big time.

THN is partially owned by TRA. It is organized as a MLP and has had a monster distribution for the last 2 years; a real cow. I can't determine if THN is going with the deal or if it will remain independent. I own a bit of THN and if it remains independent, I'm buying more. MLPs appear to be underfollowed, and perhaps too small to be attractive in the big player market. Many seem to be undervalued, particularly THN.