Timely Buy Of The Week July 31, 2008

stries Holdings, Inc. (CF) is one of NorthSales were also a record, up 37% to $1.16 billion as
America’s largest manufacturers andprice increases offset any weather-related downturns,
distributors of nitrogen and phosphate fertilizers. Theincluding the Midwest flooding.
company reported second quarter estimates thatThe fertilizer segment is expected to remain strong for
easily beat Wall Street estimates for the fifththe rest of the year.
consecutive quarter."One illustration of the market’s strength is the
CF Industries is headquartered in Deerfield, IL. Thefact that the recent upturn in urea prices took place
company operates nitrogen fertilizer manufacturingwith India, a major consumer, largely out of the
facilities in Donaldsonville, LA and Medicine Hat, Alberta;market," said Stephen R. Wilson, chairman and chief
phosphate mining and production operations in Centralexecutive officer of CF Industries Holdings, Inc.
Florida; and a variety of fertilizer distribution terminals"India, Latin America, and Western Europe now have
and warehouses in the Midwest.begun to come into the market more actively. This
Click here to find out more!development - coupled with large U.S. fertilizer import
CF controls 26% of the fertilizer market for nitrogenrequirements - could create strong fundamentals for
and 19% for phosphate in the key agricultural marketsfertilizer pricing this fall," he said.
in the Midwest. The company also exports fertilizers toThe company said that while demand looked strong
Latin and South America and owns a 50% interest infor fertilizers through the spring of 2009 there were
KEYTRADE AG, a global fertilizer tradersome events that could possibly lower this demand,
headquartered in Switzerland.including uncertainty regarding export tax levels in
CF Reports Record Earnings for the Second QuarterChina and the cost of sulfur.
On July 28, CF reported second quarter earnings andCF Has Strong Fundamentals
easily beat Wall Street estimates by 15.17%. NetCF Industries Holdings is a Zacks #1 Rank (Strong Buy)
income was a record of $288.6 million, or $5.02 perstock. CF Industries is cheap, despite a recent run-up in
share. Adjusted earnings per share were $4.10the stock. Its forward P/E is only 8.80.
compared to analysts' estimates of $3.56 per share.