AGRIUM INC. $104 - Toronto symbol AGU

AGRIUM INC. $104 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 144.5 million; Market cap: $15.0 billion; Price-to-sales ratio: 0.9; Dividend yield: 3.2%; TSINetwork Rating: Average; www.agrium.com) makes nitrogen-based fertilizers from natural gas. That could weaken its earnings growth, because the particularly cold North American winter has pushed up gas prices.

However, Agrium uses hedging contracts to lock in gas prices, which cuts its risk. Moreover, it gets 70% of its revenue by selling seeds and fertilizers to farmers through its 1,250 stores in North America, South America and Australia. That further reduces its gas-price exposure.

Agrium is a buy.

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