Mosaic Company (The) (MOS)

It’s often dangerous to buy commodity stocks when they look cheap, because that often occurs when earnings have reached a peak. This competes with Potash (POT-T), a better managed company with a better group of assets and a stronger balance sheet. To buy any of these companies, you have to be a big believer that potash and fertilizer prices are going to rise.

Has about $3 billion of corporate buybacks that will be taking place this year.

Seems to be trying to form a base at this level, but it is range bound. It is pretty neutral on a technical basis. He doesn’t have an opinion.

(Market Call Minute) Potash prices and demand have fallen off. Owns POT-T. Holds because everybody has to eat.

She is not in this sector. Who knows how that is going to happen now to the whole issue of Potash (POT-T),. Potash prices are declining. Corn prices have gone down, which is not necessarily good for fertilizer companies. She would stay away from all fertilizer companies until we know what happens in potash.

On top of everything else, China entered the fertilizer fray by taking 13% of a Russian potash producer. China is not looking to maximize its return on investments, but to maximize its return on cheap fertilizer. This would suggest that prices are still likely to work lower. He also sees downside risks for both Potash (POT-T) and Agrium (AGU-T).

BHP Billiton (BHP-N) wants to get into potash so there is always a potential of a possible takeover. If you own, be patient and wait for this nonsense in Russia to cool off. (See Top Picks.)

Different than POT and AGU. This one is a special situation. It has phosphate which is his favourite nutrient. 12 times earnings. $2.5 billion on the balance sheet. Thinks they will buy back stock with the extra cash.

You may want to stay with this one. There are brighter days ahead. Review in a year.

Nothing wrong with it. He is looking at it right now. There is a big chunk owned by Cargil and he is waiting to see what happens with that. Likes MOS. It is well positioned.

There is a very good chance this could be a takeout candidate for BHP Billiton (BHP-N) who wants to get into this sector.

(Market Call Minute.) Has been a standout performer compared to Potash (POT-T) because sentiment has shifted to phosphate. Looks toppy at these levels because of the run-up in the last little while.

Thinks the entire fertilizer business has been oversold. Thinks there will be a shortfall in grain supplies globally as a result of the drought in the US. Expecting a big demand for fertilizers going forward. He prefers Potash (POT-T).