anopenmind

The Real Reasons Fertilizer Stocks Are In the Dirt

I now realize how much sway Jim Cramer has on stock prices, having started his doomsday jabs at Ag's few months ago. One statement a month ago had him positive on Potash; then, negative, leaving one wondering "what did he mean?". Personal gain for Cramer? Analysts, including Morningstar, had POT tracking toward $410 few months ago; then, $270; now, who knows. Others this week said "farmers won't get bank loans for planting season", striving to drive Ag's further downward. However, Reuters reports: Rural banks in U.S. farm country are not freezing credit to customers like large money center banks, offering a bright spot in an otherwise gloomy economy, industry experts said on Thursday. Rural banks are able to do so because they rely on core deposits for funding rather than commercial financing from Wall Street investors and have largely steered clear of the subprime housing loans. Farmers have made good profits and have solid credit with their farm and equipment assets...and, people still gotta eat. Ag's are not similar to segments like autos, airlines, retailers. There is always the core growing demand. Despite doom & gloom, I'm staying put with Pot, Mos, Agu, Mon.