Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (43692)	8/3/2011 4:29:05 PM
From: E_K_S	Respond to of 78701

Re: BG (& AG stocks) Those were some of the same conclusions I arrived at. The fertilizer subsidiaries can really help or hurt the company's earnings just look at CF Industries Holdings, Inc. Co(: CF) or Agrium Inc. Common Stock(: AGU). Because BG sold off their fertilizer division (I think they sold it to AGU) it should be less susceptible to these large swings. I still like Agrium Inc. Common Stock(NYSE: AGU) and it's my No 2 pick as a large AG player but I have yet to buy any shares. I did cover my EI DuPont de Nemours & Co. (DD) short (I sold some covered calls 45 days ago) as I like their seed division and I feel it is a better play than Monsanto Co. (MON). That is the only reason why I continue to hold my DD shares that I bought 1/2009 at around $23.50/share. I am also looking at some smaller cap AG companies specifically Omega Protein Corporation Commo(NYSE: OME) a fish oil producer and Friedman Industries Inc. Common(AMEX: FRD) a steel fabricator of pipe for use in the water well industry, irrigation, fencing, culverts and posts. FRD is a new name to me but are local located in TEXAS and supply finished products to the rural farmer, specifically irrigation pipe & well linings which are needed in the ongoing drought. My focus is to deploy new money over time so I build up a 8%-10% position in the portfolio that represents a basket of local and global AG companies. Presently I have about a 2% exposure. Here is a list of companies I currently own that comprise my AG basket: finance.yahoo.com ULTR is a shipping company with a River Barge Business that transports soy beans & wood chips from central Brazil to ocean ports for storage, processing and eventual transport to China. (Note: Of the group I have positions in all EXCEPT AGU and FDA at this time). I consider that most in not all of these companies provide a value proposition in either the assets they own or operate and/or the cash flows they generate and/or their attractive PE (low sector PE's). Hopefully with a growing world wide Ag sector, these company's will participate in this growth. EKS