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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: quehubo who wrote (87051)	7/1/2007 8:34:57 PM
From: 8bits	Read Replies (2) \| Respond to of 206209

OT: Agriculture I am inclined to join you in DBA, although it wont be more than a modest position initially. One thing to note about many of the fertilizer companies is that they use a large amount natural gas, I remember a conference call with CEO of one of the fertilizer companies (I believe it was TRA) in 2004 (I think) where he was bitterly complaining about the price of NG. Some people were speculating at the time that the company (as well as other North American nitrogen producing fertilizer companies ..) would go bankrupt. Now that we have stable/declining NG prices with rising AG prices they are obviously in better shape. One fertilizer company POT does not really have this problem, much of their Nitrogen based fertilizer is produced in Trinidad (and as such are based upon Trinidad NG not US prices..) and they also make much of their profit from Potash mines. POT is the one fertilizer company with the widest moat but they are priced as such with an enterprise value of 26 billion and a Price to sales ratio of 6.6 and Price to book of 6.