It’s been a great run in potash related stocks and Ag overall. My basic thesis when the Russian broke the cartel in potash was that it was just a matter of time before the entire industry fought back and kept it together.
Today we are selling a core position in Potash Corporation (POT, quote) as we think the outlook for crop prices is challenged, while supply issues may also weigh on utilization levels. We are not changing our tune on the longer term thematic elements of the fertilizer sector, and we believe potash of Saskatchewan is an incredibly well run company.
Potash – $36.00 is key level but a big beat and solid guidance last week in earnings, strong support on pricing from cartel improvements, and China corn demand headlines all support our view.
Potash – $36.00 is a key level but a big beat and solid guidance last week in earnings, strong support on pricing from cartel improvements, and China corn demand headlines all support our view.
We continue to favor fertilizer space on recovering demand – and the old adage, “you can delay but you can’t deny fertilizer applications.”
Potash is -4% on the open after reporting 4Q numbers that missed by a penny but more importantly were accompanied by a 2014 forecast that substantially trailed estimates.
You may not like Vladimir Putin or the Russian government, but we all have to eat. That is the core of the argument for investing in a new type of Russian natural-resource company on the world stage: potash and phosphate producers such as Uralkali.