InvestorPlace Experts’ Big Winners of 2011 and Top Trades for 2012

A look at some of the smartest-money plays of the year

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InvestorPlace Experts’ Big Winners of 2011 and Top Trades for 2012

Bryan Perry’s Top Trade for 2012

CVR InvestorPlace Experts' Big Winners of 2011 and Top Trades for 2012Continuing the fertilizer theme is CVR Partners (NYSE:UAN), the nation’s low-cost producer of nitrogen fertilizer. With the secular bull market for food commodities fully intact, I expect UAN to generate accelerating profits and distributions in 2012. Consider this: The primary input for producing nitrogen fertilizer is natural gas. With natural gas prices at near historic lows, and prices for corn fertilizer near all-time highs, profit margins are extremely healthy.

And the numbers don’t lie. UAN went public in April 2011 at $15 per share. From there, it was five times oversubscribed, opened at $16.75, rallied to $27.75 in mid-September, and has since cooled off to its current price of $24. The partnership declared a third-quarter distribution of 57.2 cents, implying a forward dividend yield of 9.82%. The stock trades for less than 12 times forward estimates, has a very low payout ratio of 44 and boasts year-over-year quarterly revenue growth at 66%. Count on continued momentum for this fertilizer stock in the new year, upwards of $35.

Visit Perry’s Cash Machine here.


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