cashking

Canaccord Adams Analyst: Attractive Entry Point for Potash Corp.

I think that when times are tough, food is a relatively cheap way to feel better. With corn/soy prices still high, there's going to be a big crop next year (recently the cornbelt has been hit by flooding from Ike). These fert stocks will jump when Chinese contracts start to roll in this fall. Since China incorrectly tried to play the price-waiting game last year by under-ordering potash, they will be a key driver of higher contract bids.

The only short-term concern is more commodity sell-offs to raise capital from failing American financial's (although that didn't happen today). Even oil is quickly approaching an arguably oversold position.

I'm long POT, IPI.