This blog is an effort to sift through the noise. Please note that a number of resources are used to create these theses and due to an overriding desire to think rather than edit I will not be citing every little source.
Search This Blog
Monday, October 1, 2012
JANA Partners Presentation on Agrium
Barry Rosenstein spoke at the Value Investing Congress earlier today where he discussed their position in Agrium (AGU). In the presentation (see below) they disclose that JANA engaged with the management team back in May to discuss steps to realize the hidden value of the retail portion of the business. They lay out five ways Agrium can immediately increase value:
1. Committing to larger and more consistent return of capital going forward
2. Improving disclosure in Retail
3. Initiating a working capital and operational cost reduction plan in Retail
4. Rationalizing unallocated corporate overhead
5. Pursuing a separation of Retail and Wholesale
When all is said and done they think there is $50 worth of potential value creation resulting in a ~ $150 stock price versus $100 today.
Overall its pretty good analysis and reasonably compelling - especially given Jana's track record.
Enjoy:
Jana Partners - Unlocking Agrium's True Value - 2012.10.01
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment