not_yet_bill_gates

Potash Corp: Liquidity Trouble Ahead?

POT has had a current ratio well above 1.5 in the past. It has dipped only for the last quarter which has happened due to two reasons - the current assets has not grown during the quarter because the cash generated in the quarter (close to a billion just for the quarter incidentally) has been used to buy back equity. So, that restricted the current asset level thought not for any reason to be worried about. At the same time, the current liability went up because of short term debt going up by dramatically.

I do not think any company would buy back billions in dollars of equity if they were going to have trouble paying their bills. So, it could be an anomaly in accounting that would get cleared next quarter. And it looks more like that than anything else.

Of course, would love to understand if there is information on anything contrary.

Microsoft in Perfect Position to Undercut Previous Yahoo Offer

Not sure I understand your comment "Even if MSN+Yahoo immediately became the next Google, $47B right now would buy Google's earnings for 6 years. Why take such large risks for such normal returns?"

You consider that a "normal" return. If you can get cash back in 6 years on a company buy-out, thats absolutely phenomenal. You might not have considered the fact that, the cash flow after 6th year onwards also stays with you only as a buyer and that too for ever. And that is all gravy since you have recovered your investment in 6 years.