weiwentg (98.33)

If Compass opens 15% down tomorrow morning, buy the stock

July 28, 2008 – Comments (1) | RELATED TICKERS: CMP

Compass missed analysts' earnings expectations this quarter. They were expecting EPS of $0.26, and Compass reported $0.14 excluding special items, $0.10 with.

The $0.04 worth of special items seems to have been  the price they paid to retire some high yield (12%) debt. Additionally, I believe their Goderich salt mine had a planned shutdown for maintenance this quarter. They normally shut down during Q1. that boosted last quarter's earnings, and hurt this quarter's. They postponed the shutdown beacuse of increased salt demand from a snowy winter.

http://www.businesswire.com/portal/site/google/?ndmViewId=news_view&newsId=20080728006240&newsLang=en

The stock is down 15% after hours to under $60.  This is unwarranted. if CMP opens like this tomorrow, I'm buying more to replace some shares I sold just above $80.

Compass also reported, in the above article, that bids for deicing salt for next winter were coming in at prices 20% higher than last year, and that they expect these bids to come in above inflation. CMP is adding fuel surcharges to cope with rising fuel costs. the bidding process is only two thirds complete so far. deicing salt is their main business line, although sulphate of potash is an increasing proportion of their revenues due to skyrocketing prices.

 their operating results show a company worth buying, not dumping. I'll be glad to take some shares off the hands of the dumpers. I had been waiting for an opportunity like this ever since the stock, along with other agricultural commodity stocks, started taking a beating.