Five Undervalued Agricultural Chemicals To Buy

#3 Mosaic Co (NYSE:MOS)

Investors with Long Positions (as of September 30): 39

Aggregate Value of Investors’ Holdings (as of September 30): $505.58 Million

While the total number of hedge funds long Mosaic Co (NYSE:MOS) dropped by eight during the July-September period the subsequent decline in the value of aggregate holdings was about $425 million. The stock price of the $10 billion miner of phosphates and potash has fallen by nearly 35% since the start of this year. The strong dollar and weak demand for agricultural products has hurt the company. However, despite the cyclically depressed environment, the company delivered EPS of $0.62 in the third quarter, which beat estimates by $0.10. This is an ideal entry point into Mosaic, which will see headwinds slackening in the coming year. Adage Capital Management, led by Phil Gross and Robert Atchinson, boosted its stake in Mosaic Co (NYSE:MOS) by 23% during the third quarter to 4.87 million shares.

 

#2 CF Industries Holdings, Inc. (NYSE:CF)

Investors with Long Positions (as of September 30): 60

Aggregate Value of Investors’ Holdings (as of September 30): $3.05 Billion

Although the total number of hedge funds with exposure to CF Industries Holdings, Inc. (NYSE:CF) increased by three during the third trimester, the value of aggregate holdings fell by 16% amid a 31% slump of the stock price during the same period. The $9.34 billion manufacturer and distributor of nitrogen and fertilizer products has a promising future as it has now gained access to European markets with the acquisition of the Netherlands-based nitrogen producer OCI N.V. Considering higher natural gas prices in Europe CF Industries Holdings, Inc. (NYSE:CF) can service its nitrogen customers in a less costly way. David Shaw‘s D.E. Shaw upped its stake in the company by 67% during the third quarter to 11.52 million shares.

 

#1 Monsanto Company (NYSE:MON)

Investors with Long Positions (as of September 30): 50

Aggregate Value of Investors’ Holdings (as of September 30): $1.91 Billion

During the third quarter the total number of hedge funds having Monsanto in their portfolios slid by 4 while the aggregate value of their holdings decreased by about $500 million on the back of a 20% depreciation in Monsanto Company (NYSE:MON)’s stock price during this period. Larry Robbins‘ Glenview Capital holds about 13.5 million shares of the company. Monsanto Company (NYSE:MON) placed a $46.6 billion takeover bid for the world’s largest pesticide maker Syngenta AG about four months ago. The company is now internally discussing if it should place another bid given that China National Chemical Corp. is also making a move for the company.

Disclosure: None