Clay Kime

Potash Corp: Dynamics of Supply and Demand Drive Earnings Growth

I'll go out on a limb and predict. When POT has sustained trades at or above $182 it will rapidly climb to $200. Whe we get sustained trades at or above $202, we're off to the races to $240+ as the largest shorts will be taken out. We may not see the $182 level today, but we will tomorrow and $202+ by Monday/Tuesday.

This is of course depends on the non-substitution of burnt wood and chicken droppings (kind of "really-old tech") for premium, balanced fertilizer needed to increase crop yields to feed the planet.

Potash Corp: Dynamics of Supply and Demand Drive Earnings Growth

As another note, I would be very cautious with trading POT today. I think the day-traders are going to whip-saw this stock all over the place for the rest of the trading day. Once the volitility settles down a bit, there should be a good opportunity to ride POT to $300+. David White is also on target with the positive effect of AGU's earnings report. That along with the catalyst of POT and the Steel Workers (miner's union) coming to agreement soon on a new contract, POT is headed up, as it should.

Potash Corp: Dynamics of Supply and Demand Drive Earnings Growth

Good analysis. Although Investor88 is right in the short term that its stock price will be swept down with the rest of commodotiy declines (buying opportunity), it won't be long before investors realize that Potash and the other fertilizer producers will retain their pricing power for the severely allocated resources. This is somewhat the similar issue with the oil services companies. They too will be swept down (buying opportunity) with the declines in crude, until investors realize that their buisiness is unaffected by the fall in crude and their continued growth will continue as contractors for exploration and production of oil.