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Strategies & Market Trends : Value Investing

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To: Elroy who wrote (66571)	2/18/2021 3:30:35 PM
From: E_K_S	Read Replies (1) of 78822

Go back 8 years and look at the price pre 10 for one reverse split. The stock would be $260/share. I believe I bought some UAN at that time between $24-$29 ($240 - $290 the pre 10-1 reverse split). I am skeptical about the company and management's commitment to preserve/maintain stock holder's equity valuation. There is/was always a large Capital investment (CAPx), acquisition of assets to diversify fuel inputs, more facility maintenance. Many years resulting in a loss and burning up the FCF. Net result, share price falls from $240/share to $22.60/share. You are going to have to raise the dividend a lot for many years to get back your $240/share original investment. It's a MLP too that requires a K1. I have averaged down over the years but still have some of those $240/share worked into my cost basis. So yes I am skeptical even if commodity prices move way higher. Management may just make another acquisition w/ all of that FCF and/or 10x their salary. Oh yea, It's different this time.

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