Ya Ya Yara

     Citigroup today wrote up Yara, the world's leading producer of full fertilizer lines. YARIY.PK is Norwegian. Citi ranks it 1 (best) but high risk with a target of NOK 150 vs current price of NOK 110.50. It says that the supply channel for fertilizers is blocked because apart from wheat, all crops are at no more than breakeven for farmers. So they cannot buy fertilizer for next year.

    However, because stocks are low, grain prices will have to rise and ease up the supply channel situation. Citi expects that in urea there will be no oversupply as other analysts fear, because the rise in Middle EAster exports next year will just about offset the drop in Chinese exports it also expects. The current price/earnings ratio for YARIY is 2.6 which means this is a buy.

    Note that I quote analysts' reports on stocks we own because I think they affect the share price, and because I think the analysts want to get word out. I get these reports from the brokers or from Reuters and they are not copyrighted. Of course, I tell you who is the source, not only to give credit where it is due, but because it helps you judge the validity of the report you are getting.