Wednesday, February 25, 2009

Watching a buyout triangle

Today we got earnings results from Isis Pharmaceuticals (common 1.6% of portfolio, calls 3.4%), and their loss was quite modest, in relation to a growing cash balance. Obviously, upcoming clinical data will be the key driver, but it's nice to know they have such a solid cash position to fall back on. In merger news, Agrium offered to buy CF Industries, which itself had offered to buy Terra Industries. So that triangle of activity portends more deals in the future for the fertilizer companies. I own Potash (9.1% of portfolio) in that sector, so obviously that is of interest to me.