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

No comments: