Same question for ATS. Would you be a buyer here?
Forward analyst estimates have seemed to bottom and are beginning to increase, and margins are holding up decently. We think much depends on potash prices, which have been slowly rising recently. NTR is priced well at 14X forward earnings and 1.2X book, and we think that if potash prices continue to rise, its earnings growth can reaccelerate, helping to push its price higher. We would be comfortable buying NTR.
ATS on a technical basis is looking better, and we would like to see its price rise above $47. Margins are decent, but cash flows have been slipping. We think a lot of negativity has been priced in here, and we think it is a solid fundamental operator, but we would like to see more of a turnaround in its fundamentals.