CHEMICAL STOCKS CONTINUE TO SHINE IN A ROUGH MARKET

Submitted By Joshua Hayes
Terra Industries, Inc is a manufacturer of nitrogen products serving the agriculutural and industrial markets in the US, United Kingdom, and Canada. Despite the long-term success of this stock some are still shocked to find that this stock is still cheap despite it just hitting a new 52-week high. First let’s go over the fundamentals of a company that is repurchasing and additional 10 million shares of its common stock outstanding. First off the EPS has grown 999%, 650%, 500%, 185%, and 169% the past five quarters making it one of the fastest growing companies out there. To go along with the incredible EPS growth, sales growth has been fantastic with sales growth of 26%, 32%, 28%, 27%, 15%, and 22% the past six quarters. These numbers are fantastic and are the reason mutual funds have embraced this company. Fund ownership has grown from 139 to 201 to 249 to 258 funds the past four quarters. This growth now gives funds 25% of the ownership of the stock. Banks also own 16% of the stock according to Investors Business Daily. With debt only 53% of shares outstanding with a Return on equity of 46% it seems hard to believe a stock like this can be cheap. But it is. The P/E ratio is only 12 which is in the very low end of its historical 5-year range of 8 to 66. Take this cheap stock with a cash flow of $4.04 while EPS the most recent quarter was $1.80 and you have a cheap winning stock that should continue to reward investors on every pullback or breakout. Investors Business Daily gives the stock great ratings with an EPS rating of 73, a Relative Strength rating of 98, a group RS rating of 98, an SMR rating of A, an Acc/Dis rating of B+, a composite rating of 98, a timeliness rating of A, and a sponsorship rating of C. This stock is part of the Chemicals-Fertilizer group which is filled with other strong performers like MOS, SQM, POT, CF, and YARIY. This is a stock and a group I definitely want to get long on any pullback. Just remember, this stock still has not split so for those that think it is too parabolic you are probably still too early. It is cheap and there are no excessive splits that come with a stock that is ready to top. AT THE TIME OF PUBLICATION JOSHUA HAD NO POSITION IN TRA

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