Mosaic Offers Up Positive Executive Comments, No Guidance

Mosaic (MOS) reported its Q1 numbers and really stuck its neck out with this comment hidden in its press release.

“Mosaic is not providing financial guidance on potash sales volumes or MOP selling price until market conditions normalize.”

All this in the context of a revenue drop from approximately $4.3 to $1.5 billion. Mosaic is in the commodities business. Implicitly, to operate you must have a view on prices.

Yet they feel comfortable with this quote from Jim Prokopanko, Mosaic's President and Chief Executive Officer: "Phosphate fundamentals have improved. The potash market is evolving and we expect strong demand in calendar year 2010 for both nutrients.. Our long-term outlook for crop nutrients remains positive and we continue to execute our strategic plans designed to drive strong cash flow and shareholder value."

The stock popped nicely for those who understood the doublespeak.

Comments

[Benicato:]

They have forgotten the 00 Priciple or Axioma for any Business or activity: <A bad forecast is better than a NO forecast>. Beware my friends.

Oct 07 10:50 AM