Hats off to Chris Peruna for introducing me to this beauty a couple months ago. I’ve been promoting agriculture stocks and the run up this year only fuels the fire. But with every play, we need to look at the peripherals that drive these stocks up. For Mon, Mos and Pot, TITN would be that driver.

The main reason I like Titan is because of their ability to acquire companies to maintain and grow market share. Revenue and EPS growth has been amazing with EPS growth surging 250% 2 quarters ago and 100% a quarter ago. Sales in the same time frame have been growing by 60% each quarter. Titan also has low debt with a generous balance sheet to support more acquisition. Cash is estimated to be a robust 36 billion by the end of 2008. Overseas sales have given agriculture companies such as Monsanto, Mosaic and Potash the room to expand supply and thus Titan has become one of the main benefactors of this demand. I read the recent SeekingAlpha article on how Titan has to continue buying companies at a furious pace or the stock will fall hard on any missed expectations. In other words, the author doesn’t believe the company can support and maintain expansion. I like his view and do agree that if the agriculture boom ends abruptly this could go ugly. But that day may not come for at least a couple of quarters if not years, till then, I’ll take my chances.

By the way, the last two times we had a 15%+ run down, the stock soared back. This pattern has been developing about once every 2 months.

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