+ Watch IPI
on My Watchlist
Intrepid is the largest US producer with almost 10% market-share. Strong endorsement from the world's richest brothers.
dust is settling... and Koch is buying...
Lowest P/B in the industry, best financial solvency ratios, takeover candidate.
Potash been beaten down recently - this US player well positioned when farmers aroound the works come up for air
I have always made money trading this stock. Here's to the streak continuing.
Ugh, I meant to do this with a limit order at a lower price.Curse you, Perry the Platypus!
IPI, headquartered in Denver, CO, is the largest domestic producer of 'potash' (potassium chloride) and langbeinite fertilizers. They operate 5 active potash production facilities (3 in NM and 2 in UT). Their fertilizers, potash in particular, are quite essential to plant formation and growth - necessary for the production of many domestically produced crops (corn, potatoes, wheat, etc.) Currently, US crop producers import about 85% of their potash inputs. Of the remaining 15% that is domestically produced, almost 10% is distributed by IPI. When looking at IPI's financials for the past few years, I am excited about their future prospects to take an even larger domestic market share. For the past 3 years running, their top line has consistently increased. 2011 Revenues were about $443mm, compared to $359mm and $301mm in 2010 and 2009, respectively. If this top line growth doesn't excite you, maybe I should note their ability to turn revenues into actual profits appears to be increasing. Net Profit was about $110mm in 2011, up from $46mm in 2010. This is a net profit of about 25% which is quite impressive. I haven't even hit on their balance sheet, which is rock solid. Some companies are not highly leveraged, which is good... this company, however, is not leveraged AT ALL. They hold pretty much no debt (no LTD) other than about a small amount of current payables. Great... As an investor, I hate to see my company (yes, you own part of the company) have profits taken away from interest paymetns.Other positives that I won't hit on too long, but that are nonetheless extremely great indicators: ROE low teens, consistent positive cash flow from operations, reinvesting cash into propert plant and equipment purchases..Not the cheapest stock you'll find if you look at the valuation, but still very fairly priced (I believe actually undervalued by quite a bit) for what you're getting. Would you rather pay for something that will last a lifetime or rent something that will last for 1 week and then break?I say buy and hold for 3-5 years minimum
Profitability in this sector are driven by potash prices and cost of production. Potash prices are going to depend on ag demand, which is pretty much determined to grow to meet biofuels production targets, plus huge growth in the developing world. Production costs in the mine are relatively fixed and natural gas prices in North America look to remain low. I'll take this one while it is beaten down (currently $21/share).
Fertilizer stocks are priced like food is going out of style.
no debt. In bullish sector
IPI is an American play, only specialty potash in America (types needed for fruits and vegetables). Also, local supplier implies lower shipping costs implies greater local sales
This company has no debt. It sells a necessary commodity for a world population that is growing. It has high insider ownership. The price is depressed. The management is adept with its treatment of cash flow.
Largest fertilizer maker in America.
Their IPO was near the peak of the AG bubble but they are still a pretty solid company putting up good numbers in a bad climate.
Its US market has advantages--less freight expense, closer customer base. Some rocky management, changing lower expected potash output (Q4 2008).
Another chem/fertizer play on the rebound in AG sector
I've been short on this and covered during the big drop yesterday 10/16/08. Even I am shocked at how far down this went. I understand all the factors, including the general economy, but I honestly can't envision this going lower with any substance. Waiting for confirmation to go long, which I'd consider a solid break above 20. I expect to see this early next week given the absence of economic reports, so we'll only be seeing various company earnings for a couple of days, which will hopefully be positive.I'm with Buffet that once people start calling a recession, it's already over or almost over. That has been shown to be historically true in articles earlier this year about past recessions. LIBOR slowly but surely decreasing, which although some complain, that's probably the best way for it to go.
Long run I'm bullish on fertilizer.
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