Tip O'Neill

Agrium Shares Are Ripe for Growth - Barron's

If you are interested in buying on bad news in the fertilizer sector this is the time. Fertilizer sales and prices are down dramatically. MOS has just reported significant earnings erosion in FY Q3 even though they are now out of the nitrogen business which has collapsed the most. AGU gets two passes at this pain. They get whacked as a major producer especially of nitrogen and their retail division will most probably have to write down high priced inventory carried over from the fall season.

CF Industries and Agrium - Already Engaged?

The battle between Terra, CF and Agrium is multidimensional and will play out well beyond the companies’ skirmishes with their investors. Considerable and vocal resistance is developing at the farm level to the ongoing consolidation in the fertilizer industry. Farmers and Ag Retailers have been whipsawed by crop nutrient prices in the last 12 months creating a hostile political environment. These proposed mergers will be amongst the first confronted by the new administration in Washington. Equally interesting is the approach that the Canadian Competition Bureau might take in light of the new amendments (similar to Hart Scott Rodino) to the Competition Act. cb-bc.gc.ca/eic/site/c... Stay tuned!