Barry Rosenstein, the founder of JANA Partners, gave a bullish case for one of his newest positions, Agrium — a Canadian fertiliser company. In summary, Rosenstein says that Agrium (AGU) is cheaper than its peers and that it can unlock shareholder value by separating retail and wholesale.
“JANA belives that for years Agrium’s full value creation potential has been buried by the company’s conglomerate structure and burdened by operational missteps in its retail distriubtion business. As a result, Agrium trades at a significant discount to its true value and as consistently underperfromed the weighted average of its peers in total shareholder return over the long term. Agrium has also underperformed its true earnings potential due to factors including a failure to manage costs, poor capital allocation and poor disclsoure…,” the hedge fund said in an analysis.
We’ve included JANA’s incredibly detailed presentation in the slides that follow.