Terra Nitrogen Company, L.P. (NYSE:TNH)

CAPS Rating: 5 out of 5

The Company is a producer of nitrogen products and methanol. It also produces anhydrous ammonia, ammonium nitrate and nitrogen solutions in the United Kingdom.


Player Avatar marc64 (56.26) Submitted: 7/19/2013 9:56:40 AM : Outperform Start Price: $206.18 TNH Score: -49.28

I'm betting on TNH on the basis of its products being increasingly important, with demand to crawl upward in fits and starts for the foreseeable future. Natural gas might currently be unnaturally cheap, and as NG infrastructure builds out, significant new markets will come into play (passenger cars, Japan/Korea?), consquently costs for TNH may go up significantly, and profits and distributions decline. Given the push/pull, surely someone out there has a good idea of how the demand/cost balance plays out over time. Absent the raw data, this is my bet that secular demand trumps cost shocks.

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