The Successful Investor Hotline – Friday, January 4, 2008

Article Excerpt

AGRIUM INC. $72.10, Toronto symbol AGU, has gained nearly 25% in the past month, partly due to a new energy bill in the United States that mandates a five-fold increase in the production of biofuels by 2022. As a major supplier of fertilizers, Agrium should profit from higher production of crops, such as corn, for use in ethanol production. The new bill may also help Agrium re-open its plant in Kenai, Alaska, which it recently shut down due to a lack of natural gas supplies. Agrium is studying a plan to convert coal into natural gas, and could receive subsidies that would offset the costs of a new facility. However, relying on the largely politically inspired ethanol boom for growth adds to Agrium’s risk. The company is also vulnerable to rising natural gas prices. Agrium is still a hold. CANADIAN NATIONAL RAILWAY CO. $45.97, Toronto symbol CNR, has agreed to acquire Athabasca Northern Railway Ltd., which operates a 212-mile line from Fort McMurray,…