QUOTE AND NEWS
Market Intelligence Center  Jul 28  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center  are highlighting two trades on CF Industries Holdings Inc (CF) today after it closed at $252.61 on Friday. For more...
Market Intelligence Center  Jul 25  Comment 
Thursday’s trading in CF Industries Holdings Inc (CF) gives options traders an opportunity for a 9.69% return. By selling the Sep. '14 $250.00 call and buying the Jan. '15 call at the $190.00 level for a net debit of $54.70, traders will book a...
FiercePharma  Jul 17  Comment 
The drug-pricing battle continues, but this time, Gilead Sciences' Sovaldi isn't at the center.  That dubious honor goes to Vertex Pharmaceuticals' cystic fibrosis treatment Kalydeco. According to a lawsuit filed by three CF patients,...
Motley Fool  Jul 14  Comment 
Read below for more on this stock, which has climbed so much year-to-date and seems to potentially be priced to perfection.
newratings.com  Jul 11  Comment 
PARIS (dpa-AFX) - PSA Peugeot Citroën (PEUGF.PK) Friday said that following exclusive negotiations entered into on February 19, the French car maker and Banque PSA Finance signed a binding Framework Agreement with Santander Consumer Finance or...
Motley Fool  Jul 3  Comment 
Vertex's cystic fibrosis franchise is just getting started.
StreetInsider.com  Jun 30  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/UPDATE%3A+Vertex+Pharma%27s+%28VRTX%29+CF+Combo+Receives+FDA+Orphan+Drug+Designation/9624507.html for the full story.
Benzinga  Jun 30  Comment 
PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced the initiation of a global confirmatory Phase 3 clinical trial of Translarna™ (ataluren), an investigational new drug, in patients with nonsense mutation cystic fibrosis (nmCF). Nonsense...
StreetInsider.com  Jun 27  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Vertex+Pharma%27s+%28VRTX%29+KALYDECO+Receives+Positive+CHMP+Opinion+as+CF+Treatment/9619138.html for the full story.
StreetInsider.com  Jun 24  Comment 
Market wrap for June 24th End of the Day: S&P 500 down 12.6 to 1,949.98; Dow Jones down 119.1 to 16,818.13; Nasdaq down 18.3 to 4,350.36 * The Conference Board Consumer Confidence Index, which had increased in May, improved again in June. The...




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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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