The-Yellow-Rose-Street-Beat

Potash Corp.: No Liquidity Problems Here

But what if the credit card company demands immediate payment, won't accept the home as collateral, and wants to be paid now up front?

These are unprecedented times. That being said I think POT is still in very good shape and represents a great layer in buy for those with a very long term horizon or a great day trade (long or short) for those with a very short term horizon.

For those long stocks the real problem here are the hedge funds and investors who proped this stock up with leveraged money and now have to clean ship. When POT was trading at 200 it was still cheap relative to earnings. How can a company with a PEG under 1 be a bubble stock? The answer is that all stocks are bubble stocks to some degree. Those who get in early or those who get in later are fine as long as their continues to be people on the sidelines who think that the stock will go up. The moment the selling overwhelms the buying (seen by the breaking of key technical indicators) every stock that has gone up is on the wrong side of the bubble. It's just that simple.

Earnings are just one indicator of stock demand.

For that reason, as I have learned, when the charts turn and the trend is down it is usually time to get out unless one plans to invest for a decade or so or more and believes the price is good. No stock is an exception. They are all just pieces of paper and risk management, maximum loss limits, etc. must be predefined when getting in regardless of fundamentals when the charts do not point in one's favor (on the long or short side).