Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, nitrogen products producer Terra Nitrogen Company (NYS: TNH) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Terra Nitrogen's business and see what CAPS investors are saying about the stock right now.
Terra Nitrogen facts
Deerfield, Ill. (1991)
Chairman/CEO Dr. Stephen Wilson
Return on Capital (Average, Past 3 Years)
$144 million / $0
Sources: S&P Capital IQ and Motley Fool CAPS.
Earlier this month, indotrekker tapped the stock as a timely income opportunity: "[Terra Nitrogen's] high-yield dividends, market niche and huge profit margins will set it up as a hedge for many cautious investors in this precarious market."
Currently, Terra Nitrogen even sports a cheapish P/E of 6.6. That represents a clear discount to industry peers like Monsanto (NYS: MON) (23.7), PotashCorp (NYS: POT) (12.1), and Syngenta (NYS: SYT) (17.0).
CAPS member americanbuffalo expands on Terra as a great way to play defense:
I'm adding this fertilizer company to my picks based on my assumption that we are on the cusp of a nasty bear market. This is a high yield, low beta stock in an industry tied to food production -- just the ticket to ride out a bear market. Terra Nitrogen performed very well in the last bear cycle (2008) and may provide some protection over the next few months.
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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Syngenta, as well as creating a synthetic long position in Monsanto. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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