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  • Potash Corp.: Current Dividend Yield Is Scary  [View article]
    Scary? If they cut it in half which there has been no indication they will still pays 5%. If a 5% divy is something you find scary you shouldn't be investing.
    Jan 13, 2016. 06:23 PM | 7 Likes Like |Link to Comment
  • Potash downgraded to Hold from Buy at HSBC on uncertain strategy  [View news story]
    From a Motley Fool article yesterday...

    Dropping the bid for K+S also leaves Potash Corp. with a good problem to have; that is, how to deploy its excess capital. The company is expected to have $400-500 million annually of free cash flow after 2015 (after subtracting the company’s current dividend).

    The company is also sitting on around $500 million of cash as of Q2 2015, and has been discussing the sale of its equity stakes in SQM and Israel Chemical Minority stakes, which could be worth up to $3 billion.

    So sustaining the dividend should be no issue!
    Oct 10, 2015. 08:12 AM | 2 Likes Like |Link to Comment
  • Buffettian Stocks From The NYSE - Starting With The A's  [View article]
    Ok but you posted October 2nd. The closing price on October 1st was 87.90 and the EPS 5.89. So even if you are working off last years numbers (which we know are not reflective of current earnings) that would give a PE of 14.92...still not 18 as your article states. So I'm still not sure where the 18 times earning number comes from but it seems by all sources I can find to be off by quite a bit. Your article suggested Agrium was expensive when it was actually oversold and has rallied over 8% in the 3 trading days since your post. My point being only that AGU was far better value than your article and PE ratio portrayed so I think it provided a disservice to your readers.
    Oct 8, 2015. 07:45 AM | Likes Like |Link to Comment
  • Buffettian Stocks From The NYSE - Starting With The A's  [View article]
    Sven...I was hoping you might respond as to where you came up with the extremely incorrect P/E on AGU
    Oct 7, 2015. 02:11 PM | Likes Like |Link to Comment
  • Potash downgraded to Hold from Buy at HSBC on uncertain strategy  [View news story]
    So HSBC feels that because POT made a rational decision to not overpay for K & S assets that it throws their entire business model into question. If potash prices are indeed falling would that not make a stronger case for stepping away from a company who's cash cost to produce in Germany is between $200 - $250/ton while POT has all the capacity needed and produces at about $95/ton? I think had they gone ahead with the takeover it would have certainly raised concerns about their "financial strategy" but how does not spending 8-9 billion dollars negatively affect a company's financial position?
    Oct 7, 2015. 12:09 PM | 9 Likes Like |Link to Comment
  • K+S Playing 'Hard To Get' Is Not Working Out So Well For Shareholders, Or Potash Corp.  [View article]
    DuPont up 10% in last 48 hours. The rest of the ags have been beaten down plenty in anticipation. I think downside is somewhat limited here although there doesn't seem any short term catalyst for a pop either. POT dividend over 7% makes the painful wait a little easier.
    Oct 6, 2015. 08:56 AM | Likes Like |Link to Comment
  • Buffettian Stocks From The NYSE - Starting With The A's  [View article]
    AGU confirmed guidance a couple weeks ago and should earn approx 7.25 this year so they are at about 12.4 times this years earnings as of friday's close. Not sure where the 18 times number you used came from?
    Oct 5, 2015. 07:26 AM | Likes Like |Link to Comment
  • K+S - New Supply Contract Puts More Pressure On Potash Corp. To Increase Its Takeover Bid  [View article]
    I think you are right on the mark abbaman
    Aug 20, 2015. 02:08 PM | 2 Likes Like |Link to Comment
  • Buy Potash Corp. For High Dividend Yields And Long-Term Capital Appreciation  [View article]
    A note from BMO analysts from 2012...

    Despite the super-sized plans of the Melbourne, Australia-based company, not everyone shares BHP’s enthusiasm about the project’s viability and promised return on investment.

    BMO analysts Joel Jackson and Tony Robson have gone so far as to classify Jansen as the “worst” move BHP could make to get into the potash game.

    “We believe that the best decision for BHP is [to] not build or buy its way into the potash industry, and instead return cash to shareholders,” they wrote in an October note to investors.

    At best, Jansen’s project economics make it a long-term investment that is unlikely to produce revenue for almost a decade, the BMO note claims. With an internal rate of return of just 10 percent at the current potash price of $450 per tonne — or 12 to 15 percent with a $600-per-tonne price — Jansen is unlikely to see a positive cash flow until after 2025, a long time for investors to wait.

    Even worse, according to the analysts, is that with other output expansions coming from existing potash producers, the world is unlikely to need Jansen’s output for at least another decade.

    So what we know has happened in the 3 years since the article is that potash prices have declined by 30%. So the only thesis under which BHP bringing this mine to completion anytime in the near future is that the cost of building mines has decreased by about half the last 3 years. I know for certain that's not the case. Potash Corp. makes a comfortable margin at $300/ton and more than enough to maintain a substantial (in my opinion) 4.7% dividend. BHP on the other hand will take substantial losses year after year at current pricing. So let's not assume that BHP's CEO in incapable of simple math.
    May 31, 2015. 10:11 AM | 8 Likes Like |Link to Comment
  • Buy Potash Corp. For High Dividend Yields And Long-Term Capital Appreciation  [View article]
    Paying a minimal dividend? Since when is 4.7% in this rate environment considered minimal? BHP and K&S started down the path when pricing was far more lucrative. Why when you believe it's going to be a horribly unprofitable business for years (or decades) do you think BHP and K&S are going to be in a hurray to bring their mines with far higher costs to produce to production anytime soon?
    May 31, 2015. 08:12 AM | 7 Likes Like |Link to Comment
  • Fertilizing My Dividend Portfolio With Potash Corp.  [View article]
    $46.00 Canadian about 2 months ago
    May 12, 2015. 04:30 PM | 1 Like Like |Link to Comment
  • Agrium cut to Sell at Citi, which expects weakness in retail business  [View news story]
    Funny how these guys can pull a number and knock the stock down. So the un-named analyst (I wouldn't put my name to this call either) is guessing that they know Agrium's business better than Agrium knows their business. Cutting it 15% ago on valuation may have had some merit but my prediction is this will be a garbage call by Citi just like so many in the past.
    Apr 22, 2015. 05:35 PM | 1 Like Like |Link to Comment
  • Agrium raises target dividend payout ratio to 40-50% of free cash flow  [View news story]
    Good thing Cramer the clown was advising people to stay away a couple months back when it was in the 80's! And yesterday's downgrade from Miller Tabek. If either of them had a clue about this company and the free cash flow it's about to generate (which has been very well known) they might be able to provide investors with useful information!
    Jan 22, 2015. 10:57 AM | 2 Likes Like |Link to Comment
  • Potash names slip as Uralkali may restart half of Solikamsk-2 mine operations  [View news story]
    The official news release from Uralkali.."Currently there is no discussion of the launch of full or partial production in the mine." Where did the author or CNBC or any of the other manipulators get word Uralkali "is preparing to restart mining operations"?
    Nov 24, 2014. 11:44 AM | Likes Like |Link to Comment
  • Potash Corporation - Attractive Dividend Hides An Overpriced Stock  [View article]
    So based on your target price of say $19 if you subtract the estimated $5-$6 value of their investments in other companies you believe that POT as a whole should be able to be purchased outright for around 10-12 billion dollars...that really is a DRAG! I think your "guess" is incorrect and bordering on absurd but I'll archive the article and we'll revisit in 6 - 12 months. Maybe by then I can dream up a cool acronym for "valuing" the company. In the meantime best of luck with your short!
    Nov 13, 2014. 10:23 AM | Likes Like |Link to Comment