When Jim Rogers speaks I generally listen. Jim Rogers is the multi-billionaire who made his fortune with Geroge Soros years ago and then took his family and money overseas to Asia where he saw better opportunities. However Mr. Rogers still continues to be a sought out person to interview on news shows and business shows. One thing you can guarantee that Mr. Rogers will say in his interviews is that the absolute best investment opportunity for the next decade on the planet currently is agriculture. He opines that with a growing world population and most of them now starting to experience a better life due to capitalism food for people and food for animals to produce meat is the investment theme of the next decade at least.
If you have followed stocks that invest in this area such as Potash Corporation, symbol POT and Terra Nitrogen Corp. , symbol TNT, two of my favorites, then you will see they have big investment winners. BIG winners !! Mr. Rogers likes farmland and I do too, but as in war the real winners are not those engaged in war but the suppliers to the ones engaged in war. So if you are growing anything you need fertilizer in this high yield agriculture environment. POT is one of the biggest suppliers of fertilizer in the world and has almost a never ending supply in Canada to mine, but they pay a very small dividend. A dividend is a absolute for my hedge fund to be considered. TNH does similar business in the USA and they have a nice dividend, but they security offers no options and options are a absolute for my hedge fund. TNH is also a MLP, and I do not like complicating my tax return with K-1's that MLP's produce at tax time. But this area of business is too good to ignore going forward and I have searched for sometime for an entry point.
Enter my new buy UAN, CVF partners, yes I said partners as in MLP. UAN is a newly formed MLP, which owns a state of the art fertilizer facility in Kansas. UAN has affirmed a $1.92 annual initial dividend which is about 8% at current stock price. UAN also offers options. This investment sector is a must to get into and enjoy some of the large increasing profits and I have decided to take the dive into UAN.
Therefore add UAN to my watch list as I wait for an entry point closer to $20 per share. UAN is not for the people who can not take some risk, as a one operation company if that operation goes down so does the company. However with plans to double their output the chances for a doubling in price is there along with a nice dividend and option income.
As for the MLP and K-1 I suppose my CPA is smiling as well.
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