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Jun
19

Potash is a fertilizer company that produces fertilizer, phosphate and nitrate. This company’s stock has more than doubled in the past year but I think this one can go higher. There is definitely more demands in emerging markets for potash and fertilizer suppliers as a whole have seen their profits increase dramatically. This is due to the high prices of grain giving farmers the income to purchase fertilizer. Potash has a production capacity of 12.9 millin ton’s, which is 20% of the world capacity. The company has a new price estimate of 265 based on a growing EPS of 9.80 for this year. The 19 PE given a 51% growth makes POT rather cheap. This company also has the chance of splitting its price which could attract new buyers.
Technically, this stock seems to follow the pattern of consolidation, breakout, retrace.
Since POT just broke out of a consolidation period, I wouldn’t get in until a retrace as the stock seems to have fallen into that pattern.
POT

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royemberly on 23 June, 2008 at 9:20 am #

at what point will potash split


Bull Ringer on 24 June, 2008 at 8:39 am #

I foresee a 3 for 1 split when the company reaches 300 to keep the shares below 100 which is more of a psychological point. The stock had a great run after the first split


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SIMONE SALIS on 14 July, 2008 at 9:30 am #

Sure love to see the stock split again..


anonymous on 14 July, 2008 at 8:12 pm #

Let me say from the outset that I work for Agrium, but no where near a senior position to be considered an insider.
With that said, many investors seem to be missing the nitrogen play in this market. While everyone marvels at the phosphate and potassium dynamic, they almost discount agrium against the other fertilizer plays because of its major nutrient is Nitrogen. Nitrogen is in fact the number one fertilizer nutrient in terms of volumes used in production Ag by many fold. While it is true that nitrogen production can be increased more readily than the other nutrients, strong commodity prices have outstripped the capacity for N production and prices have invariably risen significantly. It is the one fertilizer nutrient that any farmer will not displace from their program. Production will not keep pace with current or even near term demand and Nitrogen will drive agrium’s earnings and potash and phosphate will only add to the momentum. Agrium will rock the earnings forecasts not only in 2nd quarter, but also in Q3 and Q4 as retailers refill storages at much higher N prices than year over year. For my money AGU will out earn per share relative to all other fertilizer plays based on current valuations. That is why nearly all of my 401K is in Agrium stock.


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