by Sam Collins | November 15, 2012 1:14 am
CVR Partners LP (NYSE:UAN) — This master-limited partnership (MLP) focuses primarily on manufacturing nitrogen fertilizers. It produces about 5% of total urea ammonium nitrate (UAN) fertilizer in the United States and is the lowest-cost producer of nitrogen fertilizer in the country. As a MLP, it is expected to continue to receive special tax treatment on dividends paid in 2013.
Last week, the company beat earnings expectations, reporting quarterly EPS of $2.41 versus estimates of $2.12. And revenue came in at $2.4 billion for the quarter, compared with the consensus estimate of $2.16 billion.
Technically, UAN has broken down from the handle of a very bullish cup-and-handle formation. The stock appears to be a temporary victim of fiscal cliff negotiations despite the fact that no change to the treatment of MLPs has been discussed.
Bryan Perry, editor of Cash Machine, recommended the stock with a buy under price of $27. Currently trading at $23.75 with an 8.2% dividend yield, this stock appears to be a very attractive long-term high-yield investment.
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