Get Bullish on AGU
by Jon Lewis 04/30/09
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Few stocks have experienced the thrill of victory and the agony of defeat more than Agrium (AGU).
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The Calgary-based agricultural chemical maker soared more than five-fold from May 2006 before peaking in June last year. But then ag prices tumbled … and so did AGU. The stock fell almost as far as it had ascended, but it took only six months for the plunge.
Now the shares are on the rebound, having gained nearly 100% since bottoming in December. For more than a month, this rally has been sustained by the dual support of the stock's 20-day and 50-day moving averages.
Yesterday, the stock popped nearly 5%, putting it above the February and early April highs.
Sentiment toward AGU is what I like to see for my bullish plays -- pessimism on all fronts.
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