Fertiliser companies are very out of favour at the moment. A major Russian producer has recently turned its back on a cartel and the stocks of fertiliser companies have quite rightly been thrashed as a result. This means that value investors and contrarians will be looking for any mis-pricing.
This is the final instalment of my How to value an oil company series, and it is a real life example of a valuation. Novus energy is a small oil company trading at a large discount to its fair value.