Allen, another area which seems to be having its difficulty is 'agricultural chemicals', specifically fertilizers.
These things are cyclical (very) of course, and I do not know the cycle. But we are seeing a rebound in basic chemical companies on one end and a sharp rebound in ag. equipment stocks on another end. So... perhaps fertilizer stocks might get pushed up too.
Regardless, I've started today a small position in GRO, which is Mississippi Chemical. Here we have a small fertilizer co., selling at what I believe might be tangible book value and near its 5 year low, and at a relative low psr. The dividend is being maintained although the company is not currently profitable. There's a bit of insider buying now also. Negatives include- not knowing the extent or severity of the down cycle (and historically it can and has been severe),lots of competition, only a five year public history on the company, the unknown effect of its international exposure, and more.
Paul Senior |
