Bunge Jump (I Love Ag)

Back on March 17 2008, the Inspector re-recommended Bunge. The stock price had just taken a dive, and like a vulture, the Inspector recommended diving in and enjoying the easy pickings – there is nothing quite like fresh road-kill – mmmm. At around $90, it was an easy call. And there was ample time to enjoy this feast. On March 31st the stock saw $86 – tasty indeed! Especially delectable at the peak of $104 today (the stock is/was trading between $101 and $104 on April 7th.) Long story short, 15% in a couple of weeks is always nice.

Check out Bunge's Chart on the Google

The Inspector recommends selling a portion of your position if you have just made over 12% - 15% Re-buy some more on a dip. This is just a suggestion – in reality, you should be good either way. If tomorrow the stock runs up some more, this suggestion is even more relevant, if it trickles back down you may want to hold on.

The agriculture sector is red-hot. Bunge is benefiting from this along with most other stocks in this space. The crazy sell-off of Bunge back in March was the reason behind the Inspector’s high recommendation. It is not necessarily the best Ag play, but was a decent short-term trade, and for you patient investors, remains a decent long-term play. The Inspector’s long-term target for Bunge is in the $105 – $115 range. If/when Bunge pulls back to around $90, do not hesitate, take the jump – dive in for some more.

On the other hand, if you’ve sold off a position in Bunge, you may want to hold on to your remaining Bunge position and pick up some Agrium with the cash you made from selling your Bunge position.

Agrium is a global producer and marketer of agricultural nutrients, industrial products and specialty products. Agrium produces and markets three primary groups of nutrients: nitrogen, potash, and phosphate, as well as controlled-release products and micronutrients.

Check out Agrium on Google Finance

Agrium has recently run up a lot, so best bet is wait for some dog-day afternoons when there is a general market sell-off/panic/pull-back – we are in a volatile market right now and there should be some opportunity for getting in while the getting’s good.

Bottom line, the Inspector recommends both Bunge and Agrium. Of the two, Agrium has more explosive growth potential, where-as under $90, Bunge represents crazy value. Buy these Ag plays on the dips.

DISCLOSURE: I own shares of Bunge and Agrium. Do your own research - don't believe everything you read or hear. Its all about the facts, nothing but the facts. Opinions are worthless (if they are not backed up by facts and hold up under scrutiny).