another fertilizer stock you may want to watch

[pvzsbvda47]

Looks interesting, though the chart isn't showing anything good yet. SCL looks more of a better play right now.

[groczzbq00]

I briefly checked this one out and worry about the "coal-based products" that they sell. Coal has been on a tear and any company that uses it as an input could see their margins squeezed. Just look at how Wall St has punished P&G. They use a lot of oil byproduct in their packaging and this is why you see the stock down 9 points.

The million dollar question with SDTH will be if the prices for their fertilizer (output) is increasing faster than the price of coal (input). I don't have that answer since the fert they produce - calcium carbonate - is foreign to me in its application in the ag industry. I will toss out that I have heard fertilizer prices are consuming a much larger portion of the average farmers budget than it has historically. I do not know how much further it can run but anectodally it seems they are making the trade-off between new equipment or fertilizer.

[rhzuswxe34]

whoa.. i used to swing trade SDTH a lot last yr and the yr before.. its a great mover

my only issue with it..i pulled up the charts and its unusual volume and there was a big sell off from the high of the day. when you mix these in with indicators, you get a stew of trouble

i also just pulled up the news to see what cause the giant run up.. sdth is planning an acquisition and normally that means short the stock

maybe it has a little more momentum but i wouldnt gamble on it... instead id look to see where it dies out and short it down to 8.75

[pbisdtga69]

good call on SDTH, a good 14 gain today:mrgreen:. thank you very much