Terra Industries
Terra Industries' 1-year performance versus the Russell 2000 index.
NYSE: TRA
2007 Revenues: $2.4 billion
Profits: $202 million
P/E: 15
2007 Revenues: $2.4 billion
Profits: $202 million
P/E: 15
This maker of fertilizer should profit from the rising demand for agricultural products in the developing world. Wayne Collette, co-manager of the Columbia Small Cap Growth fund in Boston, is also eying fertilizer supplier CF Industries (CF) of Deerfield, Ill. The shares have done well - both stocks more than doubled over the past year - but they still trade at modest valuations: 12 to 16 times estimated 2008 earnings.
"The valuations assume that these companies will have no pricing power," says Collette, "but we think the market is wrong."
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