Kennesaw State University Student Managed Investment Fund

Here's a story stock for you. Those who feel comfortable riding the wave of momentum should take a look. Here we have a stock that has been almost bulletproof during the market downturn (with a small exception). This fertalizer company has benefited greatly from the growth in the agricultural markets and has seen year over year growth rates in the triple digits. The stock has a profit margin north of 30% and a foward P/E of only 19.99.

The stock is still rising and I would look for a period of consolidation before entering a position. I would like a pullback below the $159 area (and have it hold and not continue to drop) to get a better entry point. If the stock does drop below the $154 area let it keep falling and avoid it (or go short) down to $141 (50 day MA). Below that the next support should be the 1/23 low of $105.

Well the stock seems to be range bound at the moment. It's tested its 50 day moving average twice and bounced off nicely. The initial trend is broken but on a bounce off the MA I would be a buyer (with a protective stop slightly below the MA).