To: E_K_S who wrote (51985 ) 11/18/2013 8:37:52 PM From: E_K_S Read Replies (1) | Respond to Intrepid Potash, Inc. (IPI) - News where Russian Cartel for potash may be back in placeCVR Partners, LP (UAN) - A cheap fertilizer company that may be a value candidateUralkali Holder Reaches Deal to Sell Stake (POT) (IPI) (AGU) Suleiman Kerimov and his partner have reached a deal to sell their 33% stake in potash producer Uralkali to Mikhail Prokhorov, according to Bloomberg sources. The deal values Uralkali at $20 billion. Investors hope the deal will help end a dispute with Belarus. Traders are watching shares of Potash Corp. of Saskatchewan, Inc. (NYSE: POT), Intrepid Potash, Inc. (NYSE: IPI), Agrium Inc. (NYSE: AGU), and related stocks -------------------------------------------CVR Partners, LP (UAN) The gasifier converts low priced petroleum coke into a hydrogen rich synthesis gas. The syngas is then converted into anhydrous ammonia in an ultra high efficiency ammonia plant. Subsequently, the ammonia is further upgraded into UAN in a fully integrated UAN plant. UAN also pays a nice dividend (currently yielding 13.3%) but the payout ratio is 130% and is probably not sustainable. My value premise is that as NG prices remain low, the competitive advantage for UAN is small. But as NG prices increase, UAN margins's will expand relative to their competitors. The long term play is a bet on higher NG prices while trying to buy at/near it's low.
