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This is Wolfey’s stock pick of the week for January 12th 2012
The above video was about my love for Rentech Nitrogen Partners – RNF. This was an IPO in early November, but it was overshadowed because it came out the same day at Groupon.
Why do I like Rentech Nitrogen Partners? It is located in Illinois, with close proximity to the Mississippi River. They serve the corn belt which reduces their freight expenses, plus a lot of their business is gate business, meaning ZERO freight costs. They get a premium price for their product based on the location as well.
Why else? Their expected yield is between $2.00-2.33 a share. This is around 10% dividend yield. Also, there is no distribution until May of this year, so the common people have not caught on to this stock yet, like they are currently with UAN, which has increased by about $5 during the last month.
They have also pre-sold a good amount of 2012 fertilizer at prices above the speculated prices the company set.
Final reason for this video – Rentech Nitrogen Partners sold as an IPO for around 20 bucks a share. They fell initially but are now on an upswing back to 20 bucks a share. Ride this stock all the way to 30 bucks and beyond.
Note: Since this post was written, RNF was invited to ring the opening bell at NYSE on January 19th. Impressive for a brand new company. Visit Rentech’s website www.rentechnitrogen.com to learn more about the company.
Disclosure – I am long RNF.
This article on Rentech Nitrogen Partners – Originally posted on January 12, 2012
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