CVR Partners: A Way To Invest In The Fertilizer Industry Rebound

One of my favorite investments right now is CVR Partners symbol UAN. I believe the fertilizer industry is at a significant bottom after a 7-year downturn. I created a 30-minute video for members that went through the financial statements, supply and demand for UAN, CVRs principal fertilizer product and created an EBITDA sensitivity model. I believe the price of ammonia and UAN will rise to a level that supports a double in CVR Partners share price over the next two years.

I approach the investment with a 5 to 1 reward to risk mentality. I am buying shares between 3 and 3.40 with a stop at 2.90. I am taking at most 50 cents in risk but have an upside of at least 4 a share which meets the 5 to 1 requirement.

Every stock highlighted by turnaround stock investing has a stop price no matter how confident I am in the purchase. The first goal is to always protect capital. If I am stopped out, I have a reentry price so I don’t have to worry about missing the move.

If you would like to see the CVR Video send an email to bruce@turnaroundstockinvesting.com, titled “Send the CVR Video” and I will send you a link to the video.