Today 12/28/2012 -- Inputs Stocks and the Dow

December 28, 2012 09:18 AM

The Dow took a tumble again today to the tune of -158.20 and most inputs related stocks followed with two notable exceptions.

CHS (CHSCP) -- After a dramatic trip to the lowside earlier in December, CHS is on the road to recovery, flirting with the upside three times in the last week. While stock prices are still well below levels seen earlier in the month, CHS bucked the Dow today filing a 0.27 gain at 30.27. Twice today alone CHS posted fresh resistance -- first at 30.14 and later in the day, 30.30.

A number of downstream nutrient suppliers are making fertilizer purchases to begin to rebuild inventories in anticipation of the spring application season. While the downstream reload takes place, CHS still has room to the lowside as support in the spring was established at 29.25 at the seasonal low. But with co-ops starting to fill orders, a revenue bump after having fallen most of December should give CHS a chance to weather seasonal declines.

PetroLogistics LP (PDH) -- PDH ran for the upside early in December and has remained sideways at the top of this range. It has been a bumpy ride in the last 6 months, and stock prices were 0.75 cents per share higher in October, but as all other inputs stocks have fallen with the Dow, PDH stands out with an increase of 0.13 on the day today to end at 13.03.

PDH turns propane into fertilizer and chemical feedstocks and as this young IPO finds its legs, its lock on it's proprietary process -- which lasts until 2015 -- makes it the only game in town. Investors have been disappointed with returns thus far, but once PDH irons out the bugs, this could be a company to watch long-term.

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