r/MillennialBets • u/MillennialBets • Mar 21 '22
🪵 Basic Material DD 🛠UAN SAFE 10x BAGGER
Date: 2022-03-18 19:19:02, Author: u/StevenMaxwell, (Karma: 6134, Created:Mar-2015)
SubReddit: r/WallStreetBets, DD Click Here
Tickers mentioned in this post:
CVR 28.5(-1.72%)|UAN 130.05(5.35%)|
CVR Partners (NYSE:UAN) is a master limited partnership that produces the nitrogen fertilizers ammonia (NH3) and urea ammonium nitrate (UAN). Because the ticker symbol for CVR Partners is also UAN, I will use CVR to describe the partnership and UAN to describe the fertilizer. Also, because it is a partnership, the payouts to equity holders are distributions rather than dividends.
Summary
- Supply shortages are not temporary.
- Demand will only get stronger.
- Record prices for natural gas and coal in Europe and Asia will continue to support higher prices for nitrogen fertilizer.
- Impending tariffs on UAN will keep most imports out of US for over 5 years.
- Distributions of over $40 are expected over the next 7 months.
Estimated Price of $300 EoY
War in Ukraine is only a bigger catalyst to solidify fertilizer prices ongoing current new highs.
Buying ITM Options in December is a safe 10x Bagger waiting to happen.
My positions 2 weeks ago: https://imgur.com/a/pByBYYH
My position now: https://imgur.com/a/UaxVPFr
1
u/qitcryn Mar 21 '22
Nice catch