TMR: To sum up, how do you rate the investor prospects for the fertilizer sector as opposed to other commodities?
JC: There are a limited number of players in this sector compared to other commodities. The fertilizer sector boasts bellwether companies that offer good yields and demonstrate consistent growth. This makes them a pretty safe harbor for investors.
In talking to investors we have heard that many have switched from other basic-material commodities to fertilizer companies because farmers need to use fertilizers year in and year out. This offers stability and explains why the fertilizer sector has held up reasonably well year-to-date despite the recent somewhat soft fertilizer market globally.
TMR: John, thank you for your time and your insights.
John Chu, CFA, is managing director of Agri-Industry Institutional Equity Research at AltaCorp Capital Inc. He was previously senior vice president in agriculture and industrials research at Mackie Research Capital and also worked for Scotia Capital and HSBC Securities. He holds a Bachelor of Arts with Honors in economics from Queens University and a Master of Business Administration from the University of Western Ontario.
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DISCLOSURE: 1) Kevin Michael Grace conducted this interview for Streetwise Reports LLC, publisher of The Gold Report, The Energy Report, The Life Sciences Report and The Mining Report, and provides services to Streetwise Reports as an independent contractor. He owns, or his family owns, shares of the following companies mentioned in this interview: None.