CF Industries
manufactures and distribute nitrogen and phosphate fertilizers in North
America . The company, which
went public in 2005, has grown profits from $.60 to $27.25 in 2011 and dividends
from $.02 to $1.60 in the same time frame.
It has earned between 12% and 20% return on equity. CF should continue it’s above average growth
rate because:
(1) program to
rationalize operations to reduce costs,
(2) acquisitions,
(3)
stock buy back program,
(4)
falling natural gas prices, a key ingredient in the making of fertilizer.
Negatives:
(1) price competition with its domestic
competitors,
(2)
its business serves a highly cyclical industry.
CF
is rated A by Value Line, carries a 23% debt to equity ratio and its stock
yields 0.9%.
Statistical Summary
Stock Dividend Payout # Increases
Yield Growth Rate Ratio Since 2005
CF 0.9% 27% 6% 4
Debt/ EPS Down Net Value Line
Equity ROE Since 2005 Margin Rating
CF 23% 30% 1 28% A
Chart
Note:
CF stock made great progress off its October 2008 low, quickly surpassing the
downtrend off its July 2008 high (straight red line) and the November 2008
trading high (green line). Long term, CF
is in an uptrend (blue lines).
Intermediate term, it is an uptrend (purple lines). Short term, the stock is challenging the
lower boundary of its uptrend (brown line).
The wiggly red line is the 50 day moving average. The Aggressive Growth Portfolio owns a full
position in CF. The upper boundary of
its Buy Value
Range Sell Half
Range
2/13
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