cstauffer

Potash: Thesis versus Reality Yet Again

I would hardly say the POT has been reporting "poor" numbers for three quarters in a world where just producing a profit is reason for a sigh of relief. That being said, valuing POT or any other owner of a scarce but necessary commodity based upon quarterly profits is foolish. That being said, I am glad that this is ther way traders think because it gives those of us who focus on a longer time horizon than just next quarter opportunties to purchase shares of these companies at prices well below replacement value, intrinsic value or take out value. It has recently been stated that if BHP wanted to buy POT they would have to pay upwards of $150 per share. I was recently at an investor conference put on by AGU where it was illustrated very convincingly that AGU was trading at just 43% of replacement value.