E Special Fund Report


*It is important to return to our main reason for having bought into the predecessor of Nutrien in the first place, the likely growth of demand for fertilizer which NTR expects will hit a recover this year at up to 67 mn metric tonnes and which have boosted spot prices. Higher energy prices hurt competing suppliers which don't have access to cheap nitrogen and cheap natural gas in western Canada. Don't ignore one of the features of the predecessor company we owned, Agrium, its retail arm, selling seeds, plants, and bulbs, fertilizer and tools, to gardeners as well as farmers. This business will see ~C$8 mn of new investment according to Nutrien, which wants to grow it. This will lead to M&A and greenfield builds in Canada, the US, and also in Australia and Brazil. According to analyst Steve Hanson of Raymond James brokers, in its Q2, NTR high-margin retail earnings (before interest, taxation, depreciation, and amortization) were up 17% y/y, and 11% gross. While WholeFoods sells potted plants and herbs, Amazon doesn't sell most of this stuff.

*Antofagasta gained 18.4% last week as copper prices rose (but not as quickly.) ANFGF listed in London more than a century ago when Chile didn't have a stock exchange, and its trading is quirky.

*Virgin Money fell after it went ex-div. VRGDF.

*Oops. Abhimanyu Sisodia pointed out that the budget Azure Power is planning to invest in the State of Odissa for renewable installations is not $2.8 mn but $2.8 bn. He explains that India is a promising solar market which accounted for about 30% of all corporate solar investments last year. I am responsible for having changed the number in his original filing.

*Having been designated as a Microsoft cloud migration expert manager, Infosys now also partnered with Google Cloud for migration and analytics services. We sold INFY because its digital technology for large corporate customers seemed to be passé, but I admit I may be wrong. But taking on both doesn't amount to winning IBM or the big kahuna, Amazon. It may mean conflict of interest problems.

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