A German view: Fertiliser group puts on growth
There aren’t many German stocks that have more than trebled in the past two years. But despite its impressive run-up...
There aren't many German stocks that have more than trebled in the past two years.
But despite its impressive run-up, Europe's second-biggest fertiliser group, Kali + Salz (SDF, e55), offers plenty of scope for further gains, says Udo Rettberg in Handelsblatt.
Kali + Salz, which produces industrial and household salt as well as potash and magnesium-based fertilisers, has exceeded expectations with a 47% jump in operating earnings to e39m for the third quarter on a 16% jump in turnover.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Strong demand for fertilisers amid tight global supplies allowed the group to push through price increases, and the positive market backdrop should endure over the long term. A rising global population and mounting demand for higher-quality food in developing countries, notably China, presages a growing need for fertilisers to boost the output of scarce arable land.
Kali + Salz is contemplating acquisitions to boost profits further, with the takeover of a Chilean salt mine on the cards as well as a possible joint venture with a Russian potash producer.
West LB is one of many banks deeming the stock (repeatedly highlighted by MoneyWeek over the past two years) a buy; its target price of $65 implies upside of 18%. Dresdner Kleinwort Wasserstein and DZ Bank expect similar gains over the next 12 months.The stock is currently on a 2006 p/e of 14.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
1,000 children hold over £100,000 in a junior ISA – how to grow tax-free nest egg for your child
Junior ISAs can be a tax-efficient way to grow a nest egg for your child. We explain how they work
-
How to start investing: a beginner’s guide
Getting started in investing is a great way to make your money work harder for you over the long term, as investments tend to outperform cash savings