Fertilizer Maker Terra Is Centrally Located

Terra Industries TRA gapped up on strong volume Friday and remains near a 29.84 buy point.

Based in Sioux City, Iowa, the fertilizer maker sits smack in the middle of the largest corn-producing state in the union. And corn -- linked to rising demand for ethanol and meat production -- is a particularly fertilizer-hungry crop.

The fertilizers industry group rose hard through July, then backed off. Terra Industries followed suit. Potash Saskatchewan POT and CF Industries CF have also moved into new highs. Terra Nitrogen TNH appears to be forming a base.

Suntech Power Holdings STP gapped up, adding another brick to the right side of a base now 10 weeks old.

The stock nailed a record 45.95 high the month after its December '05 IPO. It has since fumbled with breakout attempts and is now about 12% below its all-time high.

Suntech's earnings growth slowed from a triple-digit pace. But second-quarter earnings rose 53%, well above estimates.

Sales grew 148% for that period. Analysts' consensus is for a 33% increase in EPS for the full year.