Farming Crazy Over Ag Stocks – 3 Stocks Investors are Buying

Farming is hot, or at least it is when it comes to hedge fund investment. Big names like George Soros and Warren Buffett love this sector because, hey, people have to eat, right? And, especially now, as more people embrace fresh produce and food with minimal processing, agriculture and the stocks associated with it are rapidly becoming an investment trend. The stocks on our list vary in market cap from $350M to over $4B, but they are all in the agricultural chemicals industry and have trading volumes over one million.

hedge fund research

Rentech Inc (RTK) is one of the stocks investors are going crazy for. Its trading volume is over 1.8 million. It is the smallest of the companies we looked at, but don’t discount the little guy. The company recently raised over $136 million from the initial public offering of Rentech Nitrogen Partners (RNF), a subsidiary. RTK owns just over 50% of the company. Given that RTK’s market cap is $355 million, raising that much was a really big deal. From January 1 to November 11, RTK has returned 24.41%. It is currently trading at $1.58. Analysts have given the stock a one year target estimate of $1.88. Current estimates put its year over year sales will increase by 33.90% in the current year and taper down to 7.30% next year. Blackrock, Inc (BLK) owns 7.42% of the company according to a 13G/A document filed with the SEC on November 8, 2011. At the end of the second quarter, Clint Coghill’s Coghill Capital Management has more than 2% of its portfolio invested in the company.

Monsanto Co. (MON) is also a stock to watch. It has a trading volume over 3.3 million. It is also the world’s largest seed company. It has a market cap of $40.16B. Right now, it is working on genetically modified soybeans that resist insects and selling them for big dollars in developing countries. MON recently tapped more than half of the growers in Argentina – a 40-million acre opportunity. In fact, roughly 60% of its gross profit for fiscal year 2012 is forecasted to come from outside the US. ts philosophy is simple – “Farmers want innovation and farmers are willing to pay for innovation if there is a system in place that allows that to happen fairly,” explains Chief Commercial Officer Brett Begemann. MON recently traded at $75.10 and has a one year target estimate of $81.12. It has a year over year revenue growth estimate of 7.60% for the current year, which ends August 2012 by its records, and 7.10% for its next fiscal year. Its year to date return as of November 11 is 10.87%. Stephen Mandel’s Lone Pine Capital had more than $368 million in the company at the end of the second quarter, a position worth over 2.7% of its total portfolio.

Potash Corp of Saskatchewan (POT) is a $40.13B market cap company and is the most popular of the stocks we looked at. It has a trading volume of almost 5.3 million. It recently declared a quarterly dividend of US $0.07 per share payable February 9, 2012 to shareholders of record January 19, 2012. It also recently reported third-quarter earnings of $0.94 per share ($826 million), more than double the $0.38 per share ($343 million) earned in the same quarter last year. Its year over year sales growth estimate is 32.80% for this year and 13.90% for 2012. Andreas Halvorsen’s Viking Global had more than 2.5% of its portfolio invested in the company at the end of June, in a position worth more than $301 million. POT has fallen -9.43% since the first of the year (take November 11, 2011), but analyst estimates are strong. POT recently traded at $46.86 and has a one year estimate of $64.71.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!