Seeking Alpha

WSJ: Uralkali stake likely to be sold to local buyer

  • Agriculture and potash names are moving higher following a WSJ story suggesting a large stake in Russian potash giants Uralkali (URALL.PK +3.3%) likely will be sold to one of several local investors bidding for the company.
  • Sources say the Kremlin is eager to repair the rift with Belarus that led to the collapse of the informal global potash cartel and has made clear to potential bidders that some kind of sales cooperation with the country - a close Russian ally - should be restored after any deal.
  • POT +3%, MOS +3.6%, AGU +2.2%, IPI +3.4%.
  • ETFs: MOO, CROP, PAGG, VEGI.
Comments (5)
  • doc47
    , contributor
    Comments (1296) | Send Message
     
    Not sure if "buy the rumor, sell the fact" strategy works in Russia; but I do know that if you are depending on these guys to be honest and play fair you're a fool.
    2 Oct 2013, 02:08 PM Reply Like
  • Joshua Chin
    , contributor
    Comments (74) | Send Message
     
    @Doc47; though I would usually agree on the sentiment of buy the rumour, I think the scales for risk and reward are tilted slightly more to the positive side. The most material thing effecting these group of stocks are potash prices. I've made a speculative bet on human greed, it is in all parties best interest to get this cartel going again. Again, speculative, not a core portfolio holding.
    2 Oct 2013, 02:23 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    Entities act in their best interest. The cartel breakup was a moment of insanity. I may be wrong , but the dust is now clearing, and the restoring of controlled price versus wholesale dumping appear to be on their way to restoration.
    I am a holder of both MOS and IPI.
    2 Oct 2013, 03:21 PM Reply Like
  • Davephd
    , contributor
    Comments (813) | Send Message
     
    I just don't think that a cartel is a good business model to invest in for a number of reasons.
    2 Oct 2013, 03:28 PM Reply Like
  • Oxyman
    , contributor
    Comments (104) | Send Message
     
    Well the 'oil-cartel' has stood the 'test of time'; why not this one?
    2 Oct 2013, 08:18 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs