CF Industries (CF): The world’s second largest nitrogen fertilizer producer

By Timothy Lutts, Chief Investment Strategist and Editor of Cabot Stock of the Month
From Cabot Wealth Advisory 7/23/12 Sign up for free Cabot Wealth Advisory e-newsletter

Fertilizer stocks have been doing well this year. The reasons? Drought, rapidly rising prices for corn, and a growing global population. One of the best stocks recently earned mention in Cabot Top Ten Trader.

CF Industries (CF)
was featured in the July 9 issue:

 “When fertilizer giant CF Industries was first featured in Cabot Top Ten Trader in early 2007, the big news was low wheat inventories caused by droughts and demand for corn to make ethanol. Today, the demand for corn ethanol remains constant, but the big news is that record heat in the midwestern U.S. is threatening corn crops. And the constant factor in the background is still a growing world population that needs feeding.

“CF Industries manufactures and sells nitrogen and phosphate fertilizers: 85% are sold in the U.S., 8% in Canada and 7% are exported. CF Industries is the second largest nitrogen fertilizer producer in the world, a result of its acquisition of Terra Industries in 2010. With a consistent and growing position in North American fertilizer production and distribution, the way is clear for CF Industries to make headway overseas. The company will report Q2 results in early August.”

Readers who got on board in the days after that issue are off to a good start.

Today, moving in sync with the broad market, CF has pulled back from last week’s highs. Their pullbacks could last longer. But the main trends remain up and we remain bullish, so you could buy here.

Smarter, though, is to take a no-risk trial subscription to Cabot Top Ten Trader so you can see what editor Mike Cintolo is recommending now. For details, click here.