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I was hoping today would be an up day. We needed that here. It's an important location.
So much better than the 200day being support! (Which can still happen, btw - but tomorrow will give us more guidance on that)
RNF
Thanks. I'm planning on adding it into a dividend portfolio and keeping an eye on the ex dividend date as a final guide. I would love to see a fifty day or a gap fill before that time period. Get a good pps rise and the Div - then regroup for next time.
If they stay on their schedule then I expect an ex div date around 2/1 or soon there after.
2 Must-Own Stocks For 2013
http://seekingalpha.com/article/1103501-2-must-own-stocks-for-2013?source=yahoo
Rentech Nitrogen Partners, L.P. (RNF)
Our next pick is a fertilizer play. Rentech Nitrogen Partners, L.P. is a pure-play on a nitrogen fertilizer company structured as a publicly traded master limited partnership. RNF owns and operates two fertilizer production facilities. One is located in Illinois, while the other is in Pasadena, Texas. The Illinois property is one of the primary producers of nitrogen fertilizer products in the Mid Corn Belt region of the United States. This is the largest market in the United States for direct application of nitrogen fertilizer products. The Pasadena property is the largest producer of synthetic granulated ammonium sulfate in North America. This property has sales in both the United States and South America.
The reason RNF was selected revolves around its facility in Texas. It all started back in November 2, 2012, when RNF announced that it has completed the acquisition of Agrifos LLC. The initial purchase price was $158 million. Of that total $138 million was provided in cash, and the remainder of the purchase price was provided in the form of 538,793 common units of Rentech Nitrogen. This was valued at $20 million based on the 30-day volume-weighted average price of the common units prior to signing the acquisition agreement.
RNF expects that this new asset will be accretive to cash available for distribution per unit beginning in 2013. The company also believes that the Pasadena facility will generate approximately $20 million in operating income, and approximately $25 million in EBITDA in 2013. On top of that, RNF will also initiate the first planned organic growth project at the Pasadena plant to further increase the cash flow. RNF will begin work in 2013, and the desired results will increase the ammonium sulfate capacity by 20%. That additional production should contribute to cash distributions in the second half of 2014.
Other possible ideas being analyzed by RNF involve the installation of steam turbines to produce electrical power. Currently steam is being vented from the plant. If it could be captured is could prove to be a real cost savings for the company. The excess remaining power could then be exported and sold in the deregulated Texas market as another source of income. This type of planning shows some out of the box thinking, which is what business entities need in this current economic environment.
During the three months ended September 30, 2012, RNF generated operating income of $29.2 million. This is a large increase compared with the $10.4 million figure that was generated in the comparable period in the prior year. This generated a net income of $28.8 for the three months ended September 30, 2012. This compares with net income of $3.3 million for the comparable period last year.
As good as these figures sound, there are some factors that explain the increases. The surge in revenue was primarily due to increased sales volume and the timing of the shipments. For the three months ended September 30, 2011, the timing of product shipments was what made the difference. In 2011 there were fewer tons of products available for sale, and RNF secured a larger percentage of sales for delivery in the fourth quarter of 2011. In 2012 the dry weather during the second quarter of 2012 reduced sales volume. The result was that these additional products became available for delivery in the third quarter of 2012. The final outcome was that larger than expected sales figures were recorded on the third quarter's financial statements for 2012.
A better measure might be provided by the nine-month financial figures. Revenue for the nine months ended September 30, 2012, was $169.2 million, compared with $136.9 million for the comparable period in the prior year. The nine months ending September 30, 2012, generated net income of $89.4 million. This compares with net income of $20.6 million for the comparable period last year.
One final positive driver for this company revolves around the recent drought conditions experienced last year in the United States. The drought has reduced projected yields and increased corn pricing in the market. The impact of the drought will likely result in significant acres being planted next year. Low inventories should drive corn pricing through the year and support strong fertilizer demand.
With a current yield distribution of 8.4% and lots of room for future organic growth, RNF is another stock investors need to keep on their lists.
Good Morning Boo
Been waiting for a pull back.
Any thoughts on an area? I tend to focus on the a sma like the 20d or the 50d. I was curious what your thinking was. A base?
Thanks!
J
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