David White

More Pain for Petrohawk - Cramer's Lightning Round (7/7/08)

The MOS statement today indicated that MOS management thinks this little summer lull in fertilizer prices is the calm before the perfect storm (i.e. a huge rise in prices). Q3 and Q4 do tend to be the strongest quarters for Ag, so this tends to be believable. Perhaps people should not be selling their Ag stocks now, after they have already declined significantly from their recent highs. Now may well be the best near term buying opprotunity. Of course you have to balance that with the reality that the markets are all generally headed downward at the moment. Still if you are thinking long term, this may be close to the bottom (or at the bottom) in these stocks. They all seem to be saying that they will have great earnings (i.e. beat analysts estimates). I don't knwo the answer to this conundrum. A good rule of thumb is to take only those risks that you feel comfortable with. Good Luck. I still think MOS and POT are great stocks. I am sure they will turn upward for even bigger profits eventually. I am just not exactly sure when. I does seem that commodity prices on grains cannot go down too far though. People worldwide are still demanding more and more food. This doesn't seem likely to change anytime soon. The demand only seems likely to get stronger. I can see why the CEO's of the Ag companies are so optimistic. Will Ag find a bottom this week? Next? Surely it must be sometime soon. These stocks are doing to well to tank like bad ones.