PotashCorp (POT.TO)

On balance he would prefer AGU, which he also does not hold. Likes the diversified base over POT. Potash prices have been weak, although longer term it will do well. One of his top picks is an Agri today.

Had some serious drought conditions in the summer, crop yields dropped and agricultural stocks did extremely well. Came out with a warning today. Agrium (AGU-T) has kind of taken over from this company but this company is very investor friendly. There is some real value here for a value play.

Earnings are somewhat depressed because potash prices have come off quite a bit. Consumer countries like China and India have to import potash because they don’t have domestic supplies. When their economies start to slow and the currency starts to depreciate, potash becomes too expensive for them. Below $40 is a very attractive long-term entry price. Doesn’t expect potash prices to do much for the balance of this year as there is a lot of uncertainty as to what is going to happen in the fall planting season. This is a good long-term play and could be her next addition to her portfolio.

Likes this sector. Prefers Mosaic (MOS-N). The sector has been beaten up and eventually the Indians and Chinese will buy more potash. If you are patient, you will do pretty well on this one.

He is a believer in the whole agricultural story. There was a big drought in the US corn belt this summer, which has resulted in depleted stocks of grain and very high prices for corn. He thinks this’ll result in record acreage being planted next spring. This will result in big demand for fertilizer. Very inexpensive.

Likes the group but prefers to play it through Agrium (AGU-T). Stocks have been selling off on concerns about the Asian economy. Although you can expect some slowness there, it isn’t the end of the world. He would start to nibble at these prices.

Potash has very strong seasonality. Normally from the end of June right through until usually around the end of August and then tends to take a bit of a break and later in the year tends to take off again. Sold his holdings because it was not outperforming the market or it sector. Watch for the stock to bottom, sometime around the middle of October. Historically it has good seasonality from the middle of October until the 1^st week in January.

Raised its dividend today by 50%, which is a positive. The stock is trending downwards with the 50 and 200 day moving averages so he is not bullish on this one at this time. However, for long-term it is great.

Potash prices have been weak lately. There have been some negative comments by companies. This company has cut their production. No one is buying potash as there is too much of it.

If you believe over a longer time frame that potash prices will return to $700/ton then you hold it. He looks at companies that grow dividends. If investment thesis is intact, then he would continue to accumulate it. He just doesn’t call it averaging down. Great quality company that he is looking at. He wants to see more dividends to get more excited about it.

Wouldn’t be in a rush to get into this one. There has been an over inventory of potash causing them to cut back production. International buying is slow. There is a worry as to how much fertilizer of all sorts will get consumed next year if the drought continues.

Not a bad buy but not a lot of upside to this stock. Nitrogen producers seem to have a lot more potential but this one has not performed. You can put off potash on a field but not nitrogen. People are worried about the drought all over the world. Farmers may not have any money and opt out of potash except where crop insurance has paid out. AGU is her preferred play in this space.

Not his favourite fertilizer company. Prefers Agrium (AGU-T). Given this situation in the US, he believes their conditions will equate to more sales. There have been poor crops internationally. Understands Canadian crops this year will be one of the best.

Before buying, he would wait for some downside. Have given further guidance that they are going to cut some production. Basically trying to manage inventory because demand is weak. Expecting potential downside from volumes this year and into 2013. 52-week low was $38.31 and he would try to buy at that price.

(Market Call Minute.) Prefers |Agrium (AGU-T) but potash prices are a little sensitive here as to new projects in the next little while and he would like to see that through before he committed any more money.