Q: Current long term owner of NTR....still up by quite a bit. I have some TFSA cash available to add more to NTR. Happy to let it sit making 4.5% in a cash investment while Nutrien completes it's current slide.
Q#1 = while any stock can continue to plummet, at what level do you conclude that the current price is absolutely buyable? As I write this question, NTR is at $69. Using technicals with a 50mda and a 200mda, it looks like the slide could continue for a while. When does the data conclude that you should just buy it? No one can time the bottom, but NTR is getting to levels that are pretty interesting.
Q#2 = on the NTR profile page, in the top box the P/B = 1.351. Down below, P/B is 1.01. Are these numbers from different timeframes or a data provider mistake?
Thanks....Steve
Q#1 = while any stock can continue to plummet, at what level do you conclude that the current price is absolutely buyable? As I write this question, NTR is at $69. Using technicals with a 50mda and a 200mda, it looks like the slide could continue for a while. When does the data conclude that you should just buy it? No one can time the bottom, but NTR is getting to levels that are pretty interesting.
Q#2 = on the NTR profile page, in the top box the P/B = 1.351. Down below, P/B is 1.01. Are these numbers from different timeframes or a data provider mistake?
Thanks....Steve
5i Research Answer:
We are not huge fans of negative momentum, but NTR is a large company and is an industry leader. Its valuation is becoming quite attractive, however, forward growth estimates are not expecting much in the next year or two. We find the lower expectations from investors can present a good opportunity as any quarter where it reports better than expected results can boost the stock's price nicely. Potash prices have been in a downward trend since 2022, and we feel that any stabilization in these prices can help support its share price. We feel that a combination of valuation, overly negative sentiment from investors, and potash prices coming down to near historical averages can help form a thesis for a 'bottom'.