Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

AGRIUM INC T.AGU

"With more than 1,400 retail centers, Canada-based Agrium is the largest agricultural retailer in the United States, selling fertilizers, crop chemicals, and seed directly to farm customers. The company's wholesale business produces and markets the three main crop nutrients--nitrogen, potash, and phosphate--with natural resources located mainly in Canada and the United States. The bulk of Agrium's sales are generated in the U.S., Canada, and Australia."


TSX:AGU - Post by User

<< Previous
Bullboard Posts
Next >>
Post by materialsgirlon Jul 25, 2014 3:38pm
322 Views
Post# 22783213

Mistakes I've made a few

Mistakes I've made a few18 months ago a hedge fund, Jana, made a big effort to split Agrium into 2 companies, wholesale and retail, or some such division.  I was against it because the current structure is safer and more solid long term

https://www.manitobacooperator.ca/2013/02/06/jana-takes-case-for-agrium-breakup-to-canada-investors/

But I think that I made a mistake.

You see the two other main potash producers POT and MOS are trading at 16 to 19 times estimated 2015 earnings.  Many retialers trade at 15 to 20 times earnings provided they have some modest growth going on.

Yet Agrium, a combo of the two, is trading at about 11 times 2015 estimated earnings.   If we had the multiples of retailers OR of the fertiliser producers the share price might be $150 in USA funds

As a tool to fight Jana AGU boosted the divi which in itself was a good thing

Emotionally I prefer AGU as is but we are forfeiting $50 a share in the current share price by doing so.

So.   Jana, please come back.  I will be there to greet you.   You will likely succeed this time

mat 
<< Previous
Bullboard Posts
Next >>