PotashCorp (NYSE:POT): Citigroup adds Potash to their Top Picks Live list: – sell-off overdone
Source: http://notablecalls.blogspot.com/2008/08/potashcorp-nysepot-citigroup-adds.htmlPosted on Monday, August 18th, 2008 | In Market Commentary
Contributed by: Notable Calls (http://notablecalls.blogspot.com/) -
POT: Citigroup adds Potash to their Top Picks Live list: – sell-off overdone – Reit Buy and $264 tgt.
Friday data from the TFI showed that North American potash producer inventories fell by 10% MoM in July to ~1.0 mln tonnes (35% below the 5-year average).
POT shares have suffered along with the rest of the materials/energy sector as global growth concerns mount. However, the market has failed to recognize that demand for grains rarely cycle (supply cycles though) and has shown little historical correlation with economic activity.
Bottom Line – Citi believes the sell-off is overdone and at 7x core ’09 earnings, POT is discounting a far worse earnings scenario than fundamentals indicate.
Notablecalls (as disted on NCN): I think POT will get a boost on this call. One to watch today.
Last 5 posts by Notable Calls
- Petroquest Energy (NYSE:PQ): Compelling Valuation with Near-Term Catalysts; Upgrading to Overweight - J.P. Morgan - October 29th, 2009
- 15% correction coming in SP500? - October 21st, 2009
- Boeing (NYSE:BA): Downgraded to Underweight at Morgan Stanley, target to $43 - October 20th, 2009
- Par Pharmaceuticals (NYSE:PRX): Upgraded to Overweight at Barclays; target raised to $30 - October 15th, 2009
- Wyndham Worldwide (NYSE:WYN): Upgraded to Buy at Goldman Sachs; $26 target established - October 7th, 2009
 About Notable Calls (http://notablecalls.blogspot.com/)
Notable Calls is composed by an anonymous Wall Street professional who, every morning before market open, collects actionable analyst notes and offers an insightful personal response. |
No recommendations, either expressed or implied, are being made to buy, sell, hold or short any of the mentioned stocks. No legal, tax or accounting advice is expressed or implied. Always contact your attorney, CPA, or tax advisor before acting on any legal or tax issues. StraightStocks.com is not responsible for the content, products, or services of any of the advertisers on this site. StraightStocks.com receives compensation from advertisers on this blog. Services and products referred to herein are trademarks, registered trademarks, servicemarks, and/or registered servicemarks of their respective trademark or servicemark owners.