John-Galt

People Still Need to Eat: Fertilizer Stocks Oversold

Buy when the blood is in the streets. POT seems like a slam dunk, and MON a goood long term play. Potash supplies are slow to come online, and are well known. Unlike Phos and Nit, which can ramp up and down more quickly, potash takes a while to respond. It also has some built-in demand, since it is underused relative to N & P in the fertilizer mix of most countries. Of course any crash in N & P could alter this balance somewhat as they can just add a LOT more N instead of some K. The downside of that choice is groundwater pollution. I am not betting the farm, but I am adding to my POT position, expecting earnings will correct stock prices within 6-9 months. China can quit buying steel, even coal, but if they quit feeding people there will be a revolution.