Q: The three year chart on this is not pretty. Why, given the lack of potash on the market from the Ukraine and Russia, has NTR not thrived? I've done well on NTR in the past but have a hard time understanding the cyclicality. This looks like a good time to invest once again, but is it? How can tariffs hurt NTR? Where else is the US going to get their large need?
BTW, thanks for the suggestion that 475 was a good entry point for ISRG.
Now, NTR? Your thoughts, please
al
BTW, thanks for the suggestion that 475 was a good entry point for ISRG.
Now, NTR? Your thoughts, please
al
5i Research Answer:
NTR saw its share price rise and fall with the price of potash, particularly with a jump in 2021 as the Russia/Ukraine conflict took place. Tariffs can impact potash prices and NTR in particular. If Trump imposes tariffs on potash, NTR would be impacted, but it could also create opportunities for NTR globally if potash prices rise as a result of tariffs.
Forward growth estimates are fairly muted, and recent growth has been weak, but it trades at a cheap valuation of 1X book and 13X forward earnings. Potash prices appear to be beottoming and if we see a rise in prices, we feel NTR can do well. Overall, it looks OK here, but the threat of tariffs does add uncertainty.