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Analyst calls for Significant Fertilizer growth in early 2010



September 24, 2009 – Comments (2) | RELATED TICKERS: YONG.DL , CGA

 2009 hasn't been nice to imported fertilizers in China but domestic Chinese fertilizers have seen significant growth, while significant fertilizer growth overall is expected in 2010.

The sector is looking to the first half of 2010 for a turnaround and growth will depend largely on China, according to one analyst.


Two domestic Chinese fertilizer stocks with significant growth already in 2009 are YONG & CGA

YONG competitor CGA posted  228.6% growth in net income for Q4, that should give you an idea of what to expect from YONG in the soon to be released qtr and since YONG needs to gain 50% to reach CGA valuations, I am expecting fireworks on similiar type earnings.

2 Comments – Post Your Own

#1) On September 24, 2009 at 9:00 AM, catoismymotor (< 20) wrote:

I think fertilizer is a solid play no matter which way the economy goes. Everyone needs to eat in up and down times. With farmable land becomming more expensive the pressure for crop yield and quality will increase. This will drive up the demand and price for many fertilizers. Since a majority of the people in this country do not have to deal with it on a daily basis it is little thought of when compared to oil or gold. This means those of us that are savvy enough to build a strong position in fertilizers early on will literally reap the rewards down the road.

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#2) On September 24, 2009 at 9:02 AM, catoismymotor (< 20) wrote:

BTW: I own CGA and can't wait to see where it is this time next year.

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