Topic: How To Invest

Hi Pat: Can I have your quick opinion on Terra Nitrogen Company L.P.? Thanks.

Article Excerpt

Terra Nitrogen Company, L.P., $170.39, symbol TNH on New York (Shares outstanding: 18.5 million; Market cap: $3.2 billion; www.cfindustries.com), engages in the production and distribution of nitrogen fertilizer products for use in agricultural and industrial markets. Its products include anhydrous ammonia, a form of nitrogen fertilizer and the feedstock (raw material) for the production of other nitrogen fertilizers; and urea ammonium nitrate, a liquid fertilizer. Terra Nitrogen owns just one plant complex, on the Verdegris River in Oklahoma. That geographical concentration adds risk, and limits its growth prospects. Still the company trades at just 13.0 times its latest 12-months earnings, and the shares yield a high 8.8%. The stock is okay to hold. hold. …