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Swamp Gas! CF Stock Pops Like a Helium Balloon (CF)

Posted on October 6, 2021

We’re coming at you early this week, because this one’s too good to miss.

It’s a straightforward, short-term SPECULATIVE play on our good friends at CF Industries Holdings Inc. (NYSE:CF), producers of what Wall Street terms ‘agricultural inputs’ – another term for chemicals that aid in the growth of produce while killing people and animals.

But never mind all that!

There’s money on the table.

Potentially…

Fundamentals

Let’s take a quick look at the numbers –

  • First, P/E is 28.65 (compared to an industry average of just 18),
  • Dividend yield is a healthy 1.99%,
  • Price to book is a borderline 4.01,
  • EPS for the past year declined by 33.80%,
  • EPS for NEXT year is expected to grow by a puny 0.20%, and
  • Insiders unloaded $11 million in stock earlier this week, when the UK government bailed out the company!

Crazy story, it is.

The U.K. Parliament agreed to subsidize CF’s business because rising NatGas prices made their local operations unprofitable.

CF provides the UK with 60% of its “food-grade carbon dioxide”, used in the slaughter of animals, carbonating soft drinks and sustaining the “freshness” of myriad store-bought foods.

That stoked some helium-like buying, that’s now gotten way out of hand.

As those same insiders will surely tell you.

Take a look at the chart –

Stay tuned.

And may the G-d of Abraham, Isaac and Jacob ever be your guide.

Many happy returns!

Matt McAbby

 

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