QUOTE AND NEWS
SeekingAlpha  Sep 30  Comment 
By Alpha World: Last week, shares of fertilizer maker CF Industries Holdings Inc. (NYSE:CF) and the Norwegian fertilizer giant, Yara International ASA (OTCPK:YARIY) rose following the news of a possible merger deal. The deal, if materializes, will...
Agrimoney.com  Sep 26  Comment 
Svein Richard Brandtzaeg, citing Yara's talks of a $30bn merger with CF Industries, decides to stay at Norsk Hydro - which he says is "where I belong
Benzinga  Sep 26  Comment 
On CNBC's Fast Money Halftime Report, Stephanie Link suggested a long position in Macy's, Inc. (NYSE: M). She thinks that lower oil prices have a positive impact on the stock and she likes what company is doing. Link believes that Macy's, Inc....
Financial Times  Sep 25  Comment 
Cheap natural gas behind Yara and CF $27bn merger talks
Agrimoney.com  Sep 24  Comment 
UBS hikes its price target for Yara shares, on ideas of the planned tie-up with CF Industries showing big benefits. But Credit Suisse is more cautious
StreetInsider.com  Sep 23  Comment 
52-Week High: Carnival (NYSE: CCL) $42.31. Carnival reported Q3 EPS of $1.58, $0.14 better than the analyst estimate of $1.44. Revenue for the quarter came in at $4.95 billion versus the consensus estimate of $4.93 billion. The company said it...
Forbes  Sep 23  Comment 
Looking at the sectors faring best as of midday Tuesday, shares of Materials companies are outperforming other sectors, losing just 0.1%. Within the sector, CF Industries Holdings (NYSE: CF) and Newmont Mining (NYSE: NEM) are two large stocks...
TheStreet.com  Sep 23  Comment 
NEW YORK (TheStreet) --Shares of CF Industries Holdings Inc. are climbing higher by 5.75% to $270.50 on heavy volume in mid-afternoon trading on Tuesday, after it was announced the manufacturer and distributor of nitrogen and phosphate...
Benzinga  Sep 23  Comment 
Midway through trading Tuesday, the Dow traded down 0.16 percent to 17,145.38 while the NASDAQ gained 0.10 percent to 4,532.30. The S&P also fell, declining 0.07 percent to 1,992.90. Leading and Lagging Sectors In trading on Tuesday, basic...
StreetInsider.com  Sep 23  Comment 
The following is a list of notable articles to help get you through the lunch hour: Galmed Pharma (GLMD) Peers on Watch as Aramchol Receives Fast-Track Designation (GILD) (ICPT) -> Read this! GoPro (GPRO) Taps New High as Momeutm Continues...




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The company is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizer products in North America. The company's operations are organized into two business segments: the nitrogen fertilizer business and the phosphate fertilizer business. The company's principal products in the nitrogen fertilizer business are ammonia, urea and urea ammonium nitrate solution (UAN). The company's principal products in the phosphate fertilizer business are diammonium phosphate (DAP) and monoammonium phosphate (MAP). The company supplies approximately 24% of the nitrogen and approximately 12% of the phosphate used in agricultural fertilizer applications in the United States. North America accounts for 91% of CF's sales

  BULL POINTS

CF is a leader in US nitrogen. The company has one of the highest market shares in the US corn-belt (30% nitrogen, 17% phosphate) making CF the closest pure-play on potential growth in US corn acres tied to corn use for ethanol production. CF is the second largest nitrogen producer in North America with 3.6m tons of ammonia and 2.5m tons of urea capacity. CF is the #3 producer of phosphate fertilizer in North America based on 1m tons of phosphoric acid capacity in Florida. CF Industries is a leading US producer and distributor of nitrogen (75% of sales) and phosphate (25% of sales) fertilizers. The company has a 23% share of the total US nitrogen market and a 12% share of US phosphates.

Phosphate prices are strong due to low stocks, new demand for corn (from ethanol), that has created the largest corn crop since 1944 and significantly in creased acreage and fertilizer application rates. The phosphate market will remain tight next year based on healthy offshore demand growth in India and Brazil and higher application rates in the US. This is likely to lead to higher price and cash margins for various fertilizers. The Phosphate producers have better producer discipline and price leadership by Mosaic under a new team, no new mines until 2011 and offshore demand growth in India, Brazil and Australia.

     BEAR POINTS

Natural gas is the principal raw material, as well as the primary fuel source, used in the ammonia production process. Natural gas purchases accounted for approximately 54% of the total cost of sales for nitrogen fertilizers and a substantially higher percentage of cash production costs. The market price for natural gas in North America is significantly higher than the price of natural gas in other major fertilizer-producing regions. For example, during 2006, natural gas prices in the United States averaged approximately $6.74 per MMBtu and in Canada averaged approximately $5.76 per MMBtu. In comparison, during 2006, natural gas prices paid by fertilizer producers are estimated to have been approximately $1.25 per MMBtu in Russia and approximately $2.65 per MMBtu in the Republic of Trinidad and Tobago. A $1.00 per MMBtu change in the price of natural gas would change the cost to produce a ton of ammonia by approximately $33.

Customer concentration is high, as well. Three customers, Agriliance, GROWMARK, Inc., and ConAgra International Fertilizer Company made combined fertilizer purchases of approximately $944.0 million, representing approximately 48% of total net sales.




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