Follow up to Thursday's Terra Nitrogen (NYSE:TNH) piece:
Was listening to the Terra Industries (NYSE:TRA) call and about 27 minutes into the call a guy from First Capital Alliance partners asked management about the change in the partnership distribution profit sharing arrangement.
He seemed to approach it from the perspective that it would be positive for TRA (as opposed to a negative for TNH). He kept pressing management for about 5 minutes... but management danced around the question and continued to regurgitate what was released in the press release.
FINALLY the analyst said.. well... I dont want to take up any more of your time.. perhaps someone else can get to the bottom of it (and of course no one else did).
Net net..I think that the drubbing in the fertilizer stocks had more to do with the decline in TNH on Thursday than the fact that their dividend is going to be reduced.... But ultimately... going forward... investors aint gonna get the kinds of distributions that they have come to expect from recent quarters.
Gotta be one of the most boring calls I have ever been on.
The author is short TNH.
Was listening to the Terra Industries (NYSE:TRA) call and about 27 minutes into the call a guy from First Capital Alliance partners asked management about the change in the partnership distribution profit sharing arrangement.
He seemed to approach it from the perspective that it would be positive for TRA (as opposed to a negative for TNH). He kept pressing management for about 5 minutes... but management danced around the question and continued to regurgitate what was released in the press release.
FINALLY the analyst said.. well... I dont want to take up any more of your time.. perhaps someone else can get to the bottom of it (and of course no one else did).
Net net..I think that the drubbing in the fertilizer stocks had more to do with the decline in TNH on Thursday than the fact that their dividend is going to be reduced.... But ultimately... going forward... investors aint gonna get the kinds of distributions that they have come to expect from recent quarters.
Gotta be one of the most boring calls I have ever been on.
The author is short TNH.
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