yes it is...it is in the soft commodoties sector...
these anaylst reports might help..
WISE.OWL have a buy rating on SOI at $1.00
Broker picks in the soft commodities sector Jill Fraser - April 2, 2008
Analysts: Tim Morris, wise-owl.com; Michael Hevern of the stockmarket newsletter StockCubes and Audrey Riddell, IBISWorld
Stocks: Incitec Pivot (IPL), Soil Sub Technologies (SOI), Nufarm (NUF), Australian Wheat Board (AWB), GrainCorp (GNC), ABB Grain (ABB)
Incitec Pivot (IPL) – HOLD (wise-owl.com) BUY (StockCubes)
Fertilizer company Incitec Pivot’s proposed $3.3 billion takeover of explosives maker Dyno Nobel, announced early March, will create a chemical giant with a market capitalisation of over $9 billion.
The marriage will merge the world's second-largest explosives maker and Australia's largest fertiliser producer. Incitec already has a 13% stake in Dyno Nobel (DXL). Both companies rely heavily on ammonium nitrate, which is a key input in both fertiliser and dynamite.
It is anticipated that the expanded business will benefit from the growing demand for hard and soft commodities, generated by the economic growth of China and India.
The company’s significant earnings upgrade (to a record estimate of $700 million to $730 million) demonstrates the affect of the soft commodities/fertilizer boom.
Incitec Pivot Ltd is also eyeing new acquisitions and joint ventures in China and Latin America.
Soil Sub Technologies (SOI) – BUY (wise-owl.com)
Recently listed, Soil Sub Technologies (trading commenced 27 March) is an organic fertilizer manufacturer that uses the by-products of sugar or palm oil.
It is early days for the company but Morris likes its exposure.
"They’re looking to drum up contracts in China and we think that the whole organic movement and boosting crop yields from an organic perspective is a trend," he says adding, "but I probably wouldn’t put the house on it yet".
SOI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
