TNH is both fundamentally & technically wicked.
The stock pays you a dividend to bear its volatility, so the risk/reward becomes more acceptable. Eric Bolling posited that Natural Gas will be at 10, if its there, will expect TNH to get hurt as its levered to it (65% of its costs were due to it).
Fundamentally its got excellent characteristics, I especially like the $4 in FcF, 2x as much as competitors, not only that its got 0 debt! Furthermore, its assets are worth more on a book to enterprise value measure than competitors. Wicked. Check out the full comparison on Smart Money with competitors of key stats.
I’m a strong believer in buy high, sell higher. It can. Overall its sector has been strong, fertilizer, just look at POT! even though its not its direct competition, trend so far remains up.
Its technically so correct. Pull up a weekly 8 month chart and you’ll notice it doesn’t stay down for more than two weeks, if it drops, this is excellent strength. The OBV hasn’t dropped a lot, which is a plus.
On a 3 month chart, the 62% fib grids support is at 52. In general,TNH has reacted well to its fib levels. Yesterday I took a position on the 6%+ overreaction, and added to it today, as it was strong in a relatively weaker market.
Risk ofc is the 65% costs levered to nat gas prices, but I think with its solid growth and dividend, it is a good play. I think short-term it can go back to 65 which has been its resistance level, this stock looks pretty good from a channel trading perspective.
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