The fertilizer sector is one sector that investors who can tolerate moderate risk should not pass up.
I'm Reiterating a Buy recommendation for Potash (NYSE: POT), re-established with a Buy recommendation here on March 31, 2009, and for Mosaic (NYSE: MOS), re-established here on April 3, 2009; and adding a Buy recommendation for Agrium (NYSE: AGU).
Potash: P/E of 12. Tuesday closing price: $114.48. Buy on any pullback above $105. Raise the Sell/Stop Loss to $79.
Mosaic: P/E of 9. Tuesday closing price: $56.87. Buy on any pullback above $51. Raise the Sell/Stop Loss to $36.
Agrium: P/E of 8. Tuesday closing price: $50.95. Buy on any close above $50 but below $60. Sell/Stop Loss if you were to buy shares in this company: $27.
Top pick in this sector: Potash. Potash remains one of the preeminent fertilizer companies in the world, producing three critical, primary plant nutrients and phosphate animal feed ingredients for both developed and developing world markets. It is the largest producer in the world of its namesake, potash, which accounted for 43% of revenue in F2008.
Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.
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