Fundamental Trading Diary

Fundamental analysis of the capital markets

Terra Nitrogen Company (TNH)

There isn’t much glamour here – Terra Nitrogen created nitrogen based fertiliser.  They’re extraordinarily profitable (net proft >50%, roa >130%), very reliably dividend dispersal with a yield of 12%, and they have the earnings to keep it up.

They are reasonably small (161 employees for a $2.2B company), efficient, and seem to be very well managed (income and profit margins increasing consistently).  I’ve entered in a small (2%) position.


September 1, 2008 - Posted by | Uncategorized

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