Potash Corp./Saskatchewan (USA) (POT)

louie1louie (< 20) Submitted: 10/5/2008 3:51:47 PM : Start Price: $86.99 POT Score: +32.51

POT the Canadian giant company retains huge advantages in this sector including the world's largest reserves of the mineral Potash,
cost effective production of Nitrogen and Phosphates near natural
gas resources in Trinidad and the ability to expand its shipping and transport facilities world wide by nearly 100% duirng 2009-2010.
Recent reductions of commodity prices and food prices are responsible for the perception that fertilizers will take a hit and the producers of Potash have been savaged by huge market decline.
(POT is down 62% from its high on June 19th.) Since August 8, The company is also engaged in a strike by 500 members of the United Steel Workers Union...who are asking for an exponentially large increase in salaries and benefits. Yet the world demand for Potash is not likely to diminish and the mineral will remain a scarcity through 2010 according to Ag. statistics. Potash Ltd. of Canada will continue selling at production capacity to customers around the world, essentially already booked and allocated. The open questions are whether Potash Corp. will be able to fill orders, in the near-term, and whether customers will be able to finance the needed volumes that will keep harvests at optimum levels... Negative answers to either question could be catastrophic. ( To the availability of food and livestock production, worldwide.)

Take all this information along with the prospects for a fairly drastic reduction in 2009 earnings and I say that POT at $95.00 remains a buying opportunity. Notice that the company has vigorously commenced buying back its own common stock, with the realization that it's franchise has incredible growth potential, long term...and that it will retain its huge fundamental advantages over any and all competition for years hence.