cdsullivan21

RIM, Mosaic Earnings Should Provide Upside Surprise

Did you see the pricing increases that Canpotex (think the Canadian potash version of OPEC) negotiated with India last week? A 37% increase in contracted volume with a 131% increase in price. Do the math, that more than triples the top line for shipments to India alone. I expect the industry's pricing power will remain strong as other contracts are announced.

metric tonnes $ / tonne Revenue
950,000 $270 $256,500,000
1,300,000 $625 $812,500,000

While it's true that corn requires more fertilizer than soybeans, the recent U.S. crops report is not the "final word" on what actually gets put in the ground. Also, don't be fooled into thinking that a potentially modest decrease in the U.S. corn crop will have any significant impact on worldwide demand for fertilizers. The growth story for MOS is not dead. I am increasing my position every time there's a sell-off, fueled by misguided buying of the financials. Stay long for 2008.