# Agrium (ABU) vs. Potash (POT) vs. Viterra (VT)



## HaroldCrump (Jun 10, 2009)

So if you wanted to play global demand for food, agriculture, etc. which is these is the most attractive moving forward?
I'm looking for global exposure esp. in the emerging/developing world.

All three appear to be fairly priced (IMHO) at this time, give or take.

I realize each has a separate aspect of play, esp. VT compared to the other two.

But does anyone have any preferences or hold all three?


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## fersure (Apr 19, 2009)

Why not an ag etf - COW or MOO?


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## Homerhomer (Oct 18, 2010)

Agriculture stocks are projected to do great in the future so there is alot of interest, personally I am not holding any right now but will add some of them if there is any significant pull back.

I am looking at Agrium over Potash due to being slightly more diversified, I may also purchase ETF (for diversification) or Mosaic since the valuations are quite a bit lower.

Another stock related to agriculture that I am looking at is Deere, two weeks ago almost reached a point where I was comfortable buying a first lot but it since recovered quite a bit.


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## Toronto.gal (Jan 8, 2010)

I just bought VT last week and have owned AGU & POT for over a year [accumulating at every major dip]; one of my smartest investing decisions I must say! 

Given that we keep hearing about the unprecedented demand/growth for such equities & the growth of the middle class in developing nations, their changing diets/increase in population in general, that the world is hungry, etc., etc., these stocks have been hard to ignore/resist. However, given their extreme volatility & low dividends, I trade a portion under TFSA/RRSP accounts. 

I actually like the fundamentals of AGU/POT equally. Another favourite of mine was SQM, but recently, after having more than doubled my profits, I traded them all for AGU/POT shares, but I'll get back in. 

You definitely have to have a very strong stomach for these stocks, *not for the faint of heart at all.*


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## Toronto.gal (Jan 8, 2010)

Forgot to say...A*G*U, not ABU harold. You didn't mean Abenteuer Resources Corp., did you?


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## HaroldCrump (Jun 10, 2009)

Toronto.gal said:


> Forgot to say...A*G*U, not ABU harold. You didn't mean Abenteuer Resources Corp., did you?


That's right, if you note, I had corrected my original post seconds after posting.
It won't let me change the thread title though


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## Sampson (Apr 3, 2009)

Why stuck only on fertilizer stocks only? These pure resource companies are too entrenched in the price of the commodity.

My money is with Syngenta.


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## HaroldCrump (Jun 10, 2009)

Sampson said:


> Why stuck only on fertilizer stocks only? These pure resource companies are too entrenched in the price of the commodity.
> 
> My money is with Syngenta.


That raises the question of Monsanto then as well


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## Sampson (Apr 3, 2009)

HaroldCrump said:


> That raises the question of Monsanto then as well


Absolutely it does. While I like the fertilizer stocks, I really do seem them pigeon holed into only one corner of this industry. One day there will be a seed that doesn't require any fertilizer to grow at all 

I am curious to see other respondent's opinions, I was seriously looking into Agrium a while back, but I will probably end up investing in a more broad commodity holding like CBR instead.


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## LBCfan (Jan 13, 2011)

Toronto.gal said:


> Another favourite of mine was SQM, but recently, after having more than doubled my profits, I traded them all for AGU/POT shares, but I'll get back in.


FWIW, POT owns about a third of SQM.


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## Toronto.gal (Jan 8, 2010)

Don't I know it?  That was one of the many reasons why I had bought it. 

http://www.sqm.com/aspx/en/world.aspx


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## humble_pie (Jun 7, 2009)

"not for the faint of heart at all," says toronto.gal.

for complete cardiac crisis, how about migao & hangfeng fertilizer. These guys are down plus 40% in the wake of sino forest.

migao had a recent mystery purchase deal that it refused to discuss (infarct) but the market managed to CPR itself & get the pressure back to normal.


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## Toronto.gal (Jan 8, 2010)

Viterra among Canada's 50 biggest

http://www.leaderpost.com/Viterra+among+Canada+biggest/5099167/story.html


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## donald (Apr 18, 2011)

Hey tgal....pot(to)has been nice lately eh,i sometmes foucus my attention on my rrsp and dont look @ my tsfa,quiety pot is running up!!(i hold it in my tsfa)anybody like pot right now?


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## donald (Apr 18, 2011)

woops tfsa,im not the best speller.,mind moves quicker than my spelling lol


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## Toronto.gal (Jan 8, 2010)

Despite the stock volatility, I have been an "unshaken ag bull" for quite some time! 

In early May, shares dipped to about $49 & have since recovered nicely, closing Friday at $58.50/$61.64 [TSX/NYSE respectively]. 

POT reports Q2 earnings this Thursday.

http://business.financialpost.com/2011/07/22/ag-bulls-unshaken/


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## Toronto.gal (Jan 8, 2010)

Toronto.gal said:


> Viterra among Canada's 50 biggest
> 
> http://www.leaderpost.com/Viterra+among+Canada+biggest/5099167/story.html


And someone took notice! 

http://business.financialpost.com/2...ves-interest-from-third-parties-halts-shares/


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## londoncalling (Sep 17, 2011)

with POT(.to) currently ($41.89) approaching 1 + 3 month lows ($41.28), and 6 month and 1 yr lows($39.82) and fertilizers entering a period of seasonal strength in July. Is anybody considering this one or any other fertilizer a buy in the near term? I have a bid in the high 39 range for this week. Just curious to see what others think of this play...


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## Homerhomer (Oct 18, 2010)

I am considering adding a bit of pot.


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## Sampson (Apr 3, 2009)

Homerhomer said:


> I am considering adding a bit of pot.


I vote for this as CMF "quote of the year"


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## Dibs (May 26, 2011)

I bought some pot already! :frog:


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## Homerhomer (Oct 18, 2010)

Sampson said:


> I vote for this as CMF "quote of the year"


Thank you, it would also be a good idea to consider pot adhoc event for the members.

I am really getting smoked today.


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## HaroldCrump (Jun 10, 2009)

Ha, dividend bump for Agrium amidst a reduced forecast.


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## snowbird (Jun 14, 2012)

AGU almost touching 52 week lows, JANA Partners have all but sold off their holdings according to news today. Is this a bad sign for AGU? 

Is anyone watching or buying at these levels?


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## HaroldCrump (Jun 10, 2009)

I don't think it is a bad sign at all.
Good riddance.

I am still holding, but not buying more.
They have boosted their dividend 3 times just in the last 2 years, in one instance doubling it.

The recent potash news affected them as well.

P.S. I don't know why my previous post from 9/23 is blank.
I don't even recall what I had posted.


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## Homerhomer (Oct 18, 2010)

HaroldCrump said:


> P.S. I don't know why my previous post from 9/23 is blank.
> I don't even recall what I had posted.


Maybe you blocked yourself ;-)

Probably something wrong on your end since the post about increasing dividends while warning is there for the rest of us to see ;-)


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## HaroldCrump (Jun 10, 2009)

Well I'll be damned...I can see it now.
I swear it wasn't there 30 mins. ago when I was typing the reply to snowbird.
Next time, I will take a screen print :[email protected]

note to self : double check contents of cigarettes before smoking


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## snowbird (Jun 14, 2012)

AGU is on a tear, increasing dividend payout and buying back shares... 

http://www.nasdaq.com/article/agriu...dend-payout-ratio--quick-facts-20150122-00285


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## HaroldCrump (Jun 10, 2009)

Also, keep in mind that AGU pays its dividends in USD$.
Which means that just in the last 6 months, the same dividends have become 25% more valuable for Canadian investors.


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## Synergy (Mar 18, 2013)

POT also pays its dividends in USD$. I wish I would have pulled the trigger back in Sept/Oct on AGU, looks like a more diversified long term hold.


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## HaroldCrump (Jun 10, 2009)

Hope you bought POT during the Russian cartel breakdown. I believe it traded as low as $30 - $32.


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## Synergy (Mar 18, 2013)

I bought during the end of July and after the breakdown and I'm happy with an ACB of aproximately $32. Total return with dividends is over 40%, not including the USD$ factor.


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