Q: Can I get your updated thoughts on this company? Would you buy this stock at the current price ($2.56)?
Do you think fertilizer companies are good buy right now given the disruption in the Middle East?
Thanks.
Do you think fertilizer companies are good buy right now given the disruption in the Middle East?
Thanks.
5i Research Answer:
The war disruption is good for the sector, but the stocks in the sector have moved somewhat already. Much of course will depend on the duration of the war. MLP remains small, even with its giant gains of the past year. It is down 30% YTD, however. Because it has no current production, it does not benefit from current prices so much. MLP has not disclosed a potential production timeline. We would prefer NTR here, though MLP has long term potential and we would not consider it a bad company; just risky in this environment.