Agrium(AGU) just reported a huge beat in its latest quarter. Earnings per share came in 85 cents ahead of consensus estimates. Revenue was up 90%, as demand its products and services skyrocketed once again.
Management is bullish on the rest of the year, but that is based on prices for corn, wheat and soybean prices remaining at historic levels. The downward movement in those commodities lately may not support such a positive outlook. We have recently removed names like Mosaic(MOS - Cramer's Take - Stockpickr) and Potash(POT - Cramer's Take - Stockpickr) from our "Recommended" list, as there is too much "hot money" that may hammer those stocks.
We are still recommending Agrium, but we would not be adding to shares at their current level. If the stock falls a bit further, we may decide to downgrade the stock. Unfortunately, some dividend stocks become momentum trading vehicles, and that alters what our usual holding period may be -- that's something to consider if you are looking to buy and hold for a specific period of time. .at thestreet.com
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