There has been virtually no news out of Hanfeng Evergreen in the week and a half since I wrote them up as my “best idea of the month” at the end of June, and my opinion of the company and its potential future hasn’t changed.
During that time, most of the big fertilizer names are down significantly, by 10% or more, and Hanfeng has likewise fallen a bit. Chinese stocks overall have done relatively poorly, too, though not as bad as most fertilizer names. Migao, another Canadian company that runs a Chinese fertilizer business, has also fallen, though not by quite as much.
I still like Hanfeng more than any other fertilizer name because I think they’ll do well whether raw fertilizer prices drop significantly or continue climbing (though the climbing part is trickier, after a point), and I think their future should be bright if they can remain in the leadership position for slow-release fertilizer in China. I picked up shares today at US$11.37, I’ll continue watching this one carefully and may end up adding to my position.