The-Yellow-Rose-Street-Beat

Potash Corp.: No Liquidity Problems Here

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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).

Potash, Mosaic Are Looking Fertile

I have never ever ever ever heard a CC like POT last one. I mean, it was beyond the point of "great quarter guys". It was: we've been waiting 20 years as a company for this moment to arrive and now it has. The growth here will be scary good. Even with the run-up.

Yet POT will likely fall due to one major factor: Sector Rotation. AG and Oil sectors have been the place the big money has chosen as the safe haven in recent times. They have run enormously and the money has to go elsewhere for a bit. In fact I think that POT and MOS and AGU would have fallen further if not for the unbelievable quarters. If your willing to deal with some short-term stock price drops the dips here represent buying opportunities. However I like the author would buy in pieces here... I am considering opening a small position here and would add more if it drops to the 170s or lower...

Ag Stocks Could Have Steep Pullbacks

Is he writing this article to help record his own truthful convictions or is he writing this article because he wants the price to pull back to buy more shares.

I don't know him so I don't know. Anyone who has been following him for a while might be able to provide some useful insight here.