24/7 Wall St. » AGU

24/7 Wall St. Closing Bell (YUM, DMD, NLY, MS, UBS, AGU, CVS, RL, RAI, TWX, DIS, WYN, BWLD, CSCO, CZR, FFN, TNK, AKAM, NURO)

Paul Ausick — Wed, 08 Feb 2012 21:06:49 +0000

The US equity markets opened slightly higher this morning, but soon turned around and spent the rest of the morning lower before returning to about even by afternoon. Equities could close at or near where they opened today. The lack of a decision on the Greek debt swap deal is leading investors to exercise caution both in Europe and the US. If the new Greek deal is anything like the last dozen or so, it will send markets up as soon as it is announced; and once people have a chance to read the details, markets will turn south again. Crude is higher today, with WTI up 0.51% at $98.91/barrel and Brent up 1.24% at $117.67/barrel. Gold closed down -0.73% at $1,735.60/ounce.

The unofficial closing bells put the DJIA up about 6 points to 12,883.95 (0.04%), the NASDAQ rose nearly 12 points (0.41%) to 2,915.86, and the S&P 500 rose 0.22% or about 3 points to 1,349.97.

There were several analyst upgrades and downgrades today, including Yum! Brands Inc. (NYSE: YUM) cut to ‘neutral’ at Goldman Sachs; Demand Media Inc. (NYSE: DMD) cut to ‘underweight’ at Morgan Stanley; Annaly Capital Management Inc. (NYSE: NLY) cut to ‘market perform’ at FBR; Morgan Stanley (NYSE: MS) cut to ‘hold’ at Collins Stewart; and UBS AG (NYSE: UBS) cut to ‘sell’ at Deutsche Bank.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Agrium Inc. (NYSE: AGU) is up 2.16% at $82.95; CVS Caremark Corp. (NYSE: CVS) is up 1.18% at $43.59 after posting a new 52-week high of $44.08 earlier in the day; Ralph Lauren Corp. (NYSE: RL) is up 9.8% at $172.50 after posting a new 52-week high of $178.47 earlier today; Reynolds American Inc. (NYSE: RAI) is down -1.35% at $39.57; Time Warner Inc. (NYSE: TWX) is up 0.3% at $38.21 after posting a new 52-week high of $39.23 earlier today; Walt Disney Co. (NYSE: DIS) is up 0.95 at $41.34; Wyndham Worldwide Corp. (NYSE: WYN) is up 5.6% at $43.22 after posting a new 52-week high of $43.36 earlier today; and Buffalo Wild Wings Inc. (NASDAQ: BWLD) is up nearly 17% at $82.04 after posting a new 52-week high of $82.45 earlier today.

Our preview of tomorrow’s earnings releases is here. Also see our coverage of earnings for Cisco Systems Inc. (NASDAQ: CSCO) due after markets close today

Other standouts from today include the following stocks:

Ceasars Entertainment Corp. (NASDAQ: CZR) is up more than 70% at $15.32. The casino owner completed its IPO today, with 1.8 million shares going out at $9/share. We have some issues with this IPO.

FriendFinder Networks Inc. (NASDAQ: FFN) is up nearly 33% at $1.95. The adult dating site had no news today, so this must just be more halo effect from Facebook — or something else.

Teekay Tankers Ltd. (NYSE: TNK) is down more than -12% today at $3.98. The shipping company this morning priced a secondary stock offering of 15 million shares at $4/share.

Akamai Technologies Inc. (NASDAQ: AKAM) is up about 2% at $34.33. The internet company acquired a Canadian company today, and reports earnings after markets close today. We have more coverage here.

NeuroMetrix Inc. (NASDAQ: NURO) is down more than -17% at $0.95 after posting a new 52-week low of $0.94 earlier today. The medical device maker priced a secondary offering of 10.5 million shares at $1/share this morning.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – New unemployment benefits claims
10:00 a.m. – Wholesale trade report
10:30 a.m. – EIA weekly natural gas storage report
1:00 p.m. – Treasury 30-year bond auction
4:30 p.m. – Federal Reserve balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire Tagged: AGU, AKAM, BWLD, CSCO, CVS, CZR, DIS, DMD, FFN, MS, NLY, NURO, RAI, RL, TNK, TWX, UBS, WYN, YUM

Fertilizer Maker Cuts Phosphate Production (MOS, POT, AGU, MON)

Paul Ausick — Fri, 30 Dec 2011 13:07:30 +0000

Low prices for phosphate fertilizer products have forced The Mosaic Co. (NYSE: MOS) to cut production by up to 250,000 tons in the first quarter of 2012. Fertilizer makers Potash Corp. of Saskatchewan (NYSE: POT), Agrium Inc. (NYSE: AGU), and Monsanto Co. (NYSE: MON) are less dependent on potash sales than is Mosaic.

According to the company’s CEO,

Isolated phosphate market spot prices have become disconnected with the underlying agricultural fundamentals. As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American Spring Season, near term supply of phosphate barges on the Mississippi River has exceeded near-term demand. The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable.

The company continues to believe that believe that demand for phosphates and potash will be strong in 2012, following this period of “near-term cautious sentiment.”

The projected cuts total about 10% of Mosaic’s quarterly production.

Paul Ausick

Filed under: Agriculture Tagged: AGU, MON, MOS, POT

24/7 Wall St. Closing Bell (POT, AGU, SKS, VVUS, MU, AM, CPY, NEOG, TIBX, BBBY, RAM, WCAA, ABIO, PHH, LRE)

Paul Ausick — Thu, 22 Dec 2011 21:07:33 +0000

A downward revision to third-quarter GDP did not hold down early trading this morning as markets got off to a good start and remained in positive territory throughout the day. A rise in consumer confidence and in leading economic indicators likely solidified the gains. Trading volume was light again today in the run-up to the holiday weekend. WTI crude traded at $99.46/barrel and Brent traded at $107.73. Gold continues to slide, down -$5.80, at $1,607.80/ounce.

The unofficial closing bells put the DJIA up more than 63 points to 12,170.86 (0.52%), the NASDAQ rose more than 21 points (0.83%) to 2,599.45, and the S&P 500 rose 0.83% or more than 10 points to 1,254.07.

There were several analyst upgrades and downgrades today, including Potash Corp. of Saskatchewan (NYSE: POT) raised from ‘sector perform’ to ‘outperform’ at RBC Capital Markets. Other ratings actions today include Agrium Corp. (NYSE: AGU) cut from ‘outperform’ to ‘sector perform’ at RBC Capital Markets; Saks Inc. (NYSE: SKS) cut from ‘outperform’ to ‘neutral’ at Zack’s; Vivus Inc. (NASDAQ: VVUS) cut from ‘buy’ to ‘neutral’ at Roth Capital and maintained ‘outperform’ at Credit Suisse; and Micron Technology Inc. (NASDAQ: MU) maintained as ‘buy’ with an $11 target price at Sterne Agee and maintained as ‘outperform’ at Credit Suisse.

Here are some of last night’s and today’s post-earnings news reactions with prices during the last half-hour of trading: Micron Technology is up nearly 18% at $6.54; American Greetings Inc. (NYSE: AM) is down more than -21% at $13.37, after posting a new 52-week low of $12.85 earlier in the day; CPI Corp. (NYSE: CPY) is down more than -62% at $2.00, after posting a new 52-week low of $1.96 earlier in the day; Neogen Corp. (NASDAQ: NEOG) is down nearly -3% at $31.15; Tibco Software Inc. (NASDAQ: TIBX) is up nearly 8% at $23.74; and Bed Bath & Beyond Inc. (NASDAQ: BBBY) is down more than -6% at $57.70.

Other standouts from today include the following stocks:

RAM Energy Resources Inc. (NASDAQ: RAM) is up nearly 71% at $1.88. The independent oil & gas company has today relisted on the NASDAQ and has also announced a $550 million investment from a private equity firm headed by the former chairman and CEO of Petrohawk.

WCA Waste Corp. (NASDAQ: WCAA) is up nearly 31% at $6.43, after posting a new 52-week high of $6.44 earlier. The non-hazardous waste processor has approved a cash buyout offer for $526 million ($6.50/share) from a private investment fund.

ARCA biopharma Inc. (NASDAQ: ABIO) is down more than -24% at $1.02, after posting a new 52-week low of $0.97 earlier today. The biopharmaceutical firm announced a private placement of $1.75 million in stock and warrants.

PHH Corp. (NYSE: PHH) is down more than -15% at $11.01 after posting a new 52-week low of $8.75 earlier today. The mortgage servicer’s credit ratings were cut at S&P to ‘BB-’ on concern that the company would not be able to make a $423 million debt repayment scheduled for March 2013 out the its free cash flow.

Vivus Inc. (NASDAQ: VVUS) is down more than -16% at $8.72 after posting a new 52-week low of $8.60 earlier. The biopharmaceutical firm announced that its weight-loss drug Qnexa led to a higher rate of birth defects in children whose mothers were taking the drug during pregnancy.

LRR Energy, L.P. (NYSE: LRR) is up more than 9% at $19.34. The independent oil & gas company has received positive ratings from several brokers following last week’s more than 9 million new common units.

Stay tuned for Friday. Here are the noteworthy events on the schedule (all times Eastern):

8:30 a.m. – Durable goods orders report
8:30 a.m. – Personal income and spending report
10:00 a.m. – New home sales

Paul Ausick

Filed under: HI/LOW, Market Close Tagged: ABIO, AGU, AM, BBBY, CPY, LRE, MU, NEOG, PHH, POT, RAM, SKS, TIBX, VVUS, WCAA

Top Ten Analyst Upgrades & Downgrades (AGU, BLX, GNW, HBC, JEF, MU, NSC, POT, SKS, VVUS)

Administrator — Thu, 22 Dec 2011 13:27:15 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

Agrium Inc. (NYSE: AGU) Cut to Sector Perform from Outperform at RBC Capital Markets.
Banco Latinoamericano de Comercio Exterior, S.A. (NYSE: BLX) named as value stock of the day at Zacks Investment Research.
Genworth Financial Inc. (NYSE: GNW) Downgraded to Underperform from Neutral at Zacks Investment Research.
HSBC Holdings PLC (NYSE: HBC) maintained Underperform but also named as Bear of the Day at Zacks Investment Research.
Jefferies Group, Inc. (NYSE: JEF) Cut to Hold from Buy by Meredith Whitney (Late-Wednesday call).
Micron Technology, Inc. (NASDAQ: MU) Maintained Buy with $11 target at Stern Agee; maintained as Outperform at Credit Suisse.
Norfolk Southern Corporation (NYSE: NSC) maintained Outperform as Bull of the Day at Zacks Investment Research.
Potash Corp. of Saskatchewan (NYSE: POT) Raised to Outperform from Sector Perform at RBC Capital Markets.
Saks Inc. (NYSE: SKS) Downgraded to Neutral from Outperform at Zacks Investment Research.
VIVUS, Inc. (NASDAQ: VVUS) Cut to Neutral from Buy at Roth Capital; Maintained as Outperform at Credit Suisse.

JON C. OGG

Filed under: Analyst Calls Tagged: AGU, BLX, GNW, HBC, JEF, MU, NSC, POT, SKS, VVUS

Top Analyst Upgrades & Downgrades (AGU, AEM, AXP, AMR, BHP, COF, CMG, SNP, CEO, JNY, ERIC, PTR, RVBD, SODA, SON, SWC, WRB)

Administrator — Tue, 04 Oct 2011 12:27:47 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls. Despite the weakness, there are still upgrades taking place.

Agrium, Inc. (NYSE: AGU) named Bull of the Day at Zacks.
Agnico-Eagle Mines Ltd. (NYSE: AEM) Raised to Outperform at Credit Suisse.
American Express Company (NYSE: AXP) Cut to Hold at Jefferies.
AMR Corporation (NYSE: AMR) Raised to Outperform at Rodman & Renshaw.
BHP Billiton (NYSE: BHP) Raised to Outperform at Credit Suisse.
Capital One Financial Corp. (NYSE: COF) Cut to Hold at Jefferies.
Chipotle Mexican Grill Inc. (NYSE: CMG) Started as Outperform with $370 target at Credit Suisse.
China Petroleum & Chemical Corp. (NYSE: SNP) Started as Neutral at Credit Suisse.
CNOOC Ltd. (NYSE: CEO) Started as Outperform at Credit Suisse.
The Jones Group Inc. (NYSE: JNY) Value stock of the day at Zacks.
LM Ericsson Telephone Co. (NASDAQ: ERIC) Raised to Buy at Citigroup.
PetroChina Co. Ltd. (NYSE: PTR) Started as Neutral at Credit Suisse.
Riverbed Technology, Inc. (NASDAQ: RVBD) Cut to Equal-Weight at Barclays.
SodaStream International Ltd. (NASDAQ: SODA) Raised to Buy at Deutsche Bank.
Sonoco Products Co. (NYSE: SON) Cut to Hold at Argus.
Stillwater Mining Company (NYSE: SWC) Removed from Focus List ar Credit Suisse.
W.R. Berkley Corp. (NYSE: WRB) named Bear of the Day at Zacks.

JON C. OGG

Filed under: Analyst Calls Tagged: AEM, AGU, AMR, AXP, BHP, CEO, CMG, COF, ERIC, JNY, PTR, RVBD, SNP, SODA, SON, SWC, WRB

Demand for Grain to Lift Fertilizer Prices (MOS, POT, AGU, MON, CF, SYT, MOO)

Administrator — Thu, 29 Sep 2011 14:29:57 +0000

Fertilizer maker The Mosaic Co. (NYSE: MOS) reported earnings for its first fiscal quarter of 2012 after markets closed yesterday, and the company posted earnings and revenues that were in-line or slightly better than the upbeat forecast it gave just a week ago. EPS came in a $1.17 on revenue of $3.1 billion. EPS grew by 75% year-over-year and revenues were up by 41%. Gross margins also rose, from 23% in the same period a year ago to 28% in the first quarter.

Mosaic gives the first indication of overall strength among the other fertilizer makers. Potash Corp. of Saskatchewan, Inc. (NYSE: POT) is expected to post EPS of $0.93 for the quarter ending this month, more than double its EPS of $0.44 in the same period a year ago. Agrium Inc. (NYSE: AGU) is expected to show EPS of $1.85 in same period, up from EPS of $0.37 a year ago. Analysts expect CF Industries Holdings, Inc. (NYSE: CF) to post EPS of $4.56 in the September quarter, up from $1.10 a year ago. Only Monsanto Co. (NYSE: MON) is expected to post an EPS loss of -$0.27 for the current quarter, largely due to weakness in sales and margins of its Roundup herbicide.

The demand for fertilizer, particularly potash, reflects an effort among the world’s farmers to increase yields as crop prices remain relatively high. Expectations for crop plantings in the 2012-2013 crop year indicate that global wheat acreage could rise to about 563 million acres in 2012, up 4% from last year, while corn plantings could rise to 94.3 million acres world-wide.

But even if acres planted don’t increase much, farmers everywhere are looking to increase yields. China, for example, plants nearly as many acres of corn as the US, but yields are just half as large. If the country’s farmers could increase their yields, the amount of corn China must import to feed its people would fall. The country has also restricted consumption of corn for industrial purposes like sweeteners and ethanol.

In what could be a boost to seed makers like Monsanto and Syngenta AG (NYSE: SYT), China is also considering allowing the import of genetically modified seed even as it tests a domestically developed strain of corn seed. The country does allow import of genetically modified strains of corn for consumption.

Farmers chasing yield improvements are expected to be the driving force behind fertilizer makers’ growth. Mosaic received an average of $446/metric ton of potash in its first quarter, up from $331 in the same period a year ago. The company guided potash prices for the second quarter at $440-$465/metric ton. For its phosphate products, Mosaic received $576/metric ton in the first quarter, compared with $431 in the same period a year ago. Phosphate prices for the second quarter were guided at $600-$625/metric ton.

While farm prices remain high, fertilizer makers can raise prices and still maintain volume. Mosaic guided shipment levels for potash at 1.7-2.1 million metric tons for the second quarter, compared with shipments of 1.8 million metric tons in the first quarter. Shipments of phosphates are expected to rise to 3.1-3.5 million metric tons in the second quarter, compared with 3.2 million metric tons shipped in the first quarter.

The fertilizer business is strong now and looks to remain that way for the coming year. Market Vectors Agribusiness ETF (NYSE: MOO) is also up by more than 1% at $45.01 and its 52-week range is $43.00 to $57.93.

Paul Ausick

Filed under: Agriculture, Earnings, Food, International Markets Tagged: AGU, CF, MON, MOO, MOS, POT, SYT

Top Analyst Upgrades & Downgrades (AGU, CLH, COP, DNDN, FDX, IPI, KBR, MDR, N, NIHD, ORCL, MOS, SFSF, TXN, VLO, VIP, ZION)

Administrator — Mon, 12 Sep 2011 12:05:25 +0000

These are some of this Monday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

Agrium Inc. (NYSE: AGU) Raised to Neutral at Goldman Sachs.
Clean Harbors, Inc. (NYSE: CLH) Raised to Overweight at JPMorgan.
ConocoPhillips (NYSE: COP) maintained Buy but cut target to $85 at Argus.
Dendreon Corporation (NASDAQ: DNDN) Cut to Neutral at Roth.
FedEx Corporation (NYSE: FDX) Cut to Neutral at BofA/ML.
Intrepid Potash, Inc. (NYSE: IPI) Cut to Sell at Goldman Sachs.
KBR, Inc. (NYSE: KBR) listed as the value stock of the day at Zacks.
McDermott International (NYSE: MDR) called Bear of the Day at Zacks.
NetSuite Inc. (NYSE: N) Started as Outperform at Credit Suisse.
NII Holdings Inc. (NASDAQ: NIHD) Cut to Equal-Weight at Morgan Stanley.
Oracle Corporation (NASDAQ: ORCL) Raised to Conviction Buy List at Goldman Sachs.
The Mosaic Co. (NYSE: MOS) Raised to Buy at Goldman Sachs.
SuccessFactors, Inc. (NASDAQ: SFSF) Removed from U.S. Focus List at Credit Suisse.
Texas Instruments Inc. (NYSE: TXN) Maintained Buy but target to $35 at Argus.
Valero Energy Corporation (NYSE: VLO) named Bull of the Day at Zacks.
VimpelCom Ltd. (NYSE: VIP) Raised to Overweight at HSBC.
Zions Bancorp. (NASDAQ: ZION) Cut to Underperform at Stern Agee; Maintained Outperform at Credit Suisse.

JON C. OGG

Filed under: Analyst Calls Tagged: AGU, CLH, COP, DNDN, FDX, IPI, KBR, MDR, MOS, N, NIHD, ORCL, SFSF, TXN, VIP, VLO, ZION

Top Analyst Upgrades & Downgrades (AGU, IPI, NEM, OVTI, PMI, SGEN, SLM, SPWRA, TM, UA, YGE)

Administrator — Mon, 22 Aug 2011 12:29:49 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.

Agrium Inc. (NYSE: AGU) Cut to Underperform at BofA/ML.
Intrepid Potash, Inc. (NYSE: IPI) Cut to Neutral at BofA/ML.
Newmont Mining Corp. (NYSE: NEM) Raised to Buy at Citigroup.
OmniVision Technologies (NASDAQ: OVTI) Reiterated Buy with $38 target at Canaccord Genuity.
PMI Group, Inc. (NYSE: PMI) named as Bear of the Day at Zacks.
Seattle Genetics Inc. (NASDAQ: SGEN) Reiterated Sell with $10 target at Canaccord Genuity.
SLM Corporation (NYSE: SLM) Raised to Outperform at Credit Suisse.
SunPower Corporation (NASDAQ: SPWRA) Raised to Hold at Auriga.
Toyota Motor Corporation (NYSE: TM) Raised to Outperform as Bull of the Day at Zacks.
Under Armour, Inc. (NYSE: UA) Started as Buy at Canaccord Genuity.
Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) Raised to Overweight at Piper Jaffray.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Analyst Calls Tagged: AGU, IPI, NEM, OVTI, PMI, SGEN, SLM, SPWRA, TM, UA, YGE

Top Analyst Upgrades & Downgrades (ARO, AGU, AGN, AIG, CI, DTV, DISH, DWA, GLGL, MMI, RIMM, RVBD, MOBI, S, RIG, VMW, DIS)

Administrator — Tue, 16 Aug 2011 12:38:52 +0000

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.

Aeropostale, Inc. (NYSE: ARO) Raised to Hold at Jefferies.
Agrium Inc. (NYSE: AGU) Reiterated Buy as Value at Zacks.
Allergan Inc. (NYSE: AGN) Raised to Outperform at Credit Suisse.
American International Group, Inc. (NYSE: AIG) Cut to Underperform as Bear of the Day at Zacks.
CIGNA Corporation (NYSE: CI) Maintained Outperform as Bull of the Day at Zacks.
DIRECTV (NASDAQ: DTV) Cut to Neutral at BofA/ML.
Dish Network Corp. (NASDAQ: DISH) Cut to Underperform at BofA/ML.
DreamWorks Animation SKG Inc. (NASDAQ: DWA) Cut to Neutral at BofA/ML.
GLG Life Tech Corporation (NASDAQ: GLGL) maintained Buy but cut estimates and target to $7.50 at Canaccord Genuity.
Motorola Mobility Holdings Inc. (NYSE: MMI) Cut to Sell at Argus; Cut to Underperform at Raymond James; Cut to Neutral at Goldman Sachs; Raised to Market Perform at BMO.
Research-in-Motion Ltd. (NASDAQ: RIMM) Cut to Sell at Societe Generale.
Riverbed Technology, Inc. (NASDAQ: RVBD) Raised to Buy at SunTrust Robinson Humphrey.
Sky-mobi Limited (NASDAQ: MOBI) Cut to Hold at Citigroup.
Sprint Nextel Corporation (NYSE: S) Raised to Buy at Collins Stewart.
Transocean Ltd. (RIG : NYSE) maintained HOLD but raised target to $69 at Canaccord Genuity.
VMware Inc. (NYSE: VMW) Raised to Overweight at Barclays.
Walt Disney Co. (NYSE: DIS) Cut to Neutral at BofA/ML.

JON C. OGG

Filed under: Analyst Calls Tagged: AGN, AGU, AIG, ARO, CI, DIS, DISH, DTV, DWA, GLGL, MMI, MOBI, RIG, RIMM, RVBD, S, VMW

Planting a Seed in the Weak Equities Markets (CF, POT, MOS, MON, SYT, AGU, DBA, MOO)

247wallst — Wed, 03 Aug 2011 17:25:48 +0000

While the debate over raising the US debt ceiling grabbed all the headlines for the past week or so, US equity markets have been facing other headwinds that haven’t lightened since the deal was reached. For proof, just look at the price of gold today, a new high above $1,675/ounce and silver prices also heading north, with a high so far today at $41.89. Commodity prices are mostly down, with WTI crude oil heading for $92/barrel. The dollar is also falling against the euro, the yen, and the British pound.

Overall weakness in US economic growth, combined with still shaky European sovereign debt and some slowing in the emerging markets have dampened enthusiasm for equities. The Dow appears headed for a ninth straight day of losses and the S&P 500 has posted a new low for the year. There have to be some winners among equities, don’t there?

One place to look is fertilizer companies. CF Industries Holdings Inc. (NYSE: CF) has been rising steadily for the past 52-weeks and is now about 90% higher than its 52-week low. The company’s trailing 12-month P/E ratio is 17.37, and its forward P/E is 9.98. The price/book ratio is at 2.5. CF Industries reports earnings tomorrow and analysts are expecting EPS of $5.87 on revenues of $1.76 billion. Three months ago EPS estimates were $5.39, so the bar has been set higher rather than lower.

CF Industries is just the top dog among several fertilizer companies that have experienced good growth in the past 12 months. Potash Corp. of Saskatchewan (NYSE: POT) has posted share price growth of nearly 60%, Mosaic Co. (NYSE: MOS) is up more than 40%, Syngenta AG (NYSE: SYT) and Agrium Inc. (NYSE: AGU) are both up more than 35%, and Monsanto Co. (NYSE: MON) has gained about 20%.

Global demand for food is high and rising, and increasing yields on available farmland is the quickest and cheapest way to get more food. These growth rates are, perhaps, too strong to be sustainable, but barring some enormous foul-up on the part of fertilizer makers, the upward trend in share prices is likely to continue.

For ETF investors, the PowerShares DB Agriculture ETF (NYSE: DBA) has posted a share price gain of around 28% this year, leading the Market Vectors Agribusiness ETF (NYSE: MOO) by a couple of percentage points of gain. DBA is down about -1% today, at $32.47, within a 52-week range of $25.45-$35.58. MOO is also down about -1%, at $52.07, in a 52-week range of $41.03-$57.93.

Paul Ausick

Filed under: General Tagged: AGU, CF, DBA, MON, MOO, MOS, POT, SYT