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Strategies & Market Trends : Dino's Bar & Grill

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To: Goose94 who wrote (22304)11/11/2016 7:41:52 AM
From: Goose94Read Replies (2) of 202092
 
Ryan Bushell top pick Agrium (AGU-T) on BNN.ca Market Call tonite. Thrist-day Nov 10th @ 1800ET

We were positive on the proposed Agrium/Potash merger from the outset and as owners of Potash Corp we had seen our position drift down on a relative basis in client portfolios by September. We decided to initiate a position in Agrium in late September when pessimism surrounding both the merger, and the potash market generally, seemed overdone. Since that time sentiment has improved significantly but we still think owning these stocks ahead of the merger closing will benefit a long term investor, especially if we really are moving to a traditional late cycle period where commodities outperform. Potash Corp probably has more upside but also more downside if the deal craters, while Agrium is the steadier choice with a higher yield. We own both for clients at the present time.
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