Agrium has run up quite well in the past 6 months (50%) despite the inevitable recession we are experiencing. I still like Agrium’s prospects and think it will continue to run up.

This is why

1. Forecasted EPS has risen from 1.92-2.22 to 2.80-3.00 and some even believe this number to be conservative. If they include the earnings from their acquisition, this number should be surpassed

2. Agrium is the leading producer and marketer of agricultural nutrients in North and South America and produces 8 million tons of fertilizers per year. There is already an established market and demand for Agrium’s products

3. The company continues to expand its retail side in Canada, Mexico, Brazil and Asia. Analysts see this expansion as potentially doubling the $2 billion in revenue within 5 years

However, if a prolonged global recession does occur, this will hurt revenues and take the stock lower

Technically, this looks and feels a lot like the Potash chart I posted a week ago except I feel as though risk tolerance on this one would need to be higher because the movements down are alot more sudden. Probably to shake off the weak holders

Related Posts

• TITN : Perfect Buying Opportunity?
• Potash (Pot) - High demand for a high riser
• True Religion – What the hell are the shorts thinking??
• Shorting World Poker Tour Enterprises
• Waste Management Inc – One man’s garbage is another man’s treasure