Barry Isaacs

Potash Corp. Poised to Double Market Capitalization

I concur with JG. JPMorgan has POT earning $25 per share for 2009. If JPM is correct, POT would have a P/E ratio of 17 were it to hit Carpenter's $425 target, not 27. 2008 earnings should come in at a minimum of $12 per share, which means that it is currently trading at less than a 15 P/E. The voluble POT CEO, Bill Doyle, has not withdrawn his guidance for the quarter despite the strike so my guess is that things are still swimming along despite current labor difficulties.
Peter Lynch used to say that compounded annual earnings growth is the key to share appreciation. There is no reason to expect that POT, with its great earnings and revenue prospects, will prove an exception to Lynch's rule.