For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.
"If you are looking for a quality company paying an outstanding dividend with excellent upside potential, I recommend Terra Nitrogen (NYSE: TNH), my top conservative selection for 2008," says Dennis Slothower, editor of Stealth Stocks.
"The company produces and distributes nitrogen fertilizer products, used primarily by farmers to improve yield and quality of their crops. With the trend toward bio-fuels, the demand for nitrogen fertilizers has an exponential future.
"The company is one of the largest North American producers of anhydrous ammonia, ammonium nitrate and nitrogen solutions, and is the largest producer of ammonia and ammonium nitrate in the United Kingdom.
"I like this stock for several reasons. It pays a very handsome dividend of 7%, but this is also a growth company that is undervalued with a P/E ratio of 12 times earnings but a sales growth rate of 45%.
"The intrinsic value of this stock is $235 a share. This has the potential of doubling or even tripling your investment over the next three to five years while paying an excellent dividend."
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