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TSE:POT

PotashCorp (POT.TO)

WAIT
We have some support at $90 and then again at $100.
BUY
Some risk in the short term. Thinks this stock will act well. Demand has to pick up again. He expects some more consolidation in this industry.
WEAK BUY
Has gone nowhere this year. He is worried about the outlook. There is still an over-supply in potash. It is more of a long-term story. You won’t see a bounce this year.
PAST TOP PICK
(A Top Pick May 7/09. Down 6%.) Potash prices have stabilized around $350. Longer term this price is not sustainable. You need $550-$700 a ton. This company is #1 potash producer globally and will benefit tremendously when the price goes up.
BUY
Likes stocks that have products that are going to be used in developing nations. Great story.
COMMENT
6 months is a little iffy for agriculture stocks but has more confidence in 18 months. Around $100 you are starting to get valuations that are pretty attractive.
BUY
Thinks this sector is going to do better in the next little while. (See Top Picks.)
STRONG BUY
(Market Called Minute.) Thinks it has been oversold. A next year’s story on the price of fertilizers.
COMMENT
Prefers Agrium (AGU-T), which is more diversified. This is a seasonally weak period. Stocks have been run down globally. The product will be in demand next year and the year after.
DON'T BUY
It’s a favorite of his to write options against. Their earnings were ok but they did not guide up significantly. The grain harvest was strong so Potash falls.
BUY
Should hit $130 in 12 months. Farming is coming back along with farming prices. When that happens, fertilizers will be in demand. (See Top Picks.)
WAIT
Seasonality is quite strong around the end of the year. Currently it is in a trading range so you are not seeing much of anything. It has negative relative strength. Trading below its 200 and 50 day moving averages. Wait until about July, but the real sweet spot is from October until December.
BUY
A good entry point. Pricing is slowly starting to recover. It’s an attractive entry point.
BUY
(Market Call Minute) Likes it. Putting a bottom right about here.
PAST TOP PICK
(A Top Pick May 7/09. Down 1.2%.) Potash is a necessary nutrient for agriculture. This will come back. Still a Buy.
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