Q: Purchased this stock earlier this year in a registered account. Down about 20% in a few months . Timing was not good. Should keep the stock for long term or move on. Prepared to hold. Thoughts ?
5i Research Answer:
The decline has been almost entirely due to falling fertilizer prices globally. The company has also experienced some inflationary pressures. These are not really its 'fault' but of course that doesn't help the stock price. Wells Fargo raised its rating on NTR today, and investors are looking forward to next year, where prices 'should' improve. At 10X earnings and a 'should be safe' 3.3% dividend, we think the situation is well reflected in the price, and we would OK holding this today.