Seeking Alpha

One of the keys in being a successful contrarian investor is realizing when an equity is selling off for reasons that are likely to have a long term negative effect on its business model and when a decline is triggered by an event that is likely to have temporary impacts. An example of the former can be found looking at the recent price action in Intrepid Potash (IPI). The stock has lost a third of its value since the Russian cartel that controls a good portion of potash production in the world broke up with analysts calling for potash prices to sink by over 25% as the cartel breakup will lead to production increases. Obviously, this is...

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