I love fertilizer stocks as a long term play on rising global demand for food and Yara International (YARIY), the world’s largest publicly traded fertilizer company, is one of my favorites in the sector. But that’s the long term picture.
In the short term Yara International is still a commodities stock and right now the commodity sector is getting killed on worries that growth is going to slow in Brazil, India, China (especially China) and the rest of the developing world as governments there raise interest rates or otherwise tighten the money supply in order to fight inflation.
I’ll be on the lookout to re-buy these shares at a lower price later in 2010 when I’m looking for the turn in emerging markets. (For more on why I’m raising cash now and when I might re-buy see my post http://jubakpicks.com/2010/05/18/time-to-start-raising-some-cash-there-are-bargains-waiting-down-the-road/ )
But right now this is a sell in Jubak’s Picks. (Yara International remains one of the 50 stocks in my long-term Jubak Picks 50 portfolio. I’m selling on May 19 with a loss of 1% since I added the stock to the portfolio on May 22, 2007.
Full disclosure: I will sell my own shares of Yara International three days after this is posted.