Agrium is Our Top Pick in 2007

Article Excerpt

We picked Agrium as our “Stock of the Year” in 2005, and again in 2006. We liked its low-cost operations, and its low p/e (then about 10). Although the company’s exposure to natural gas prices adds to its volatility, recent acquisitions have helped cut its risk. It should also benefit from increasing worldwide demand for food, and for renewable fuels. That’s why we are once again picking Agrium as our Stock of the Year for 2007. AGRIUM INC. $36 (Toronto symbol AGU; Aggressive Growth Portfolio, Resources sector; SI Rating: Average) is a leading producer of nitrogen, phosphate and potash fertilizers and crop protection products. It has 12 major production facilities in Canada and the United States, and one in Argentina that it operates through a joint venture. Sales to farmers and other agricultural customers account for the bulk of Agrium’s sales. The company also sells its products to industrial companies. For example, forest companies use Agrium’s chemicals in the production of wood resins. Agrium’s…

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