Potash is on Steroids!
Posted on Tuesday, April 8th, 2008 | In Stocks to WatchPotash Corp./Saskatchewan (USA) (Public, NYSE:POT) is officially up more than 200% YTD. The stock is more pumped than the Govenator back in the 70’s. Can the company keep up this bull run? Or will it shrivel and die like Stallone’s testicles after an injection of Steroids?
Recent news for the stock includes:
Shares of Potash Corp. of Saskatchewan Inc. rose Monday, after an analyst hiked his price target by $45 on strong demand and pricing for potash, a fertilizer. “Potash producers recently announced substantial price increases in the international markets — India, Brazil and Southeast Asia — reflecting robust demand globally and scarcity of product,” Rodriquez wrote in a client note. Pricing for potash has been supported by such factors as rising demand for ethanol, made from corn.
Standard & Poor’s Ratings Services said its corporate credit rating on Potash Corp of Saskatchewan Inc is unaffected by the company’s recently announced share repurchase program.
The company plans on buying back up to 5 pct of its common shares outstanding over one year through a normal course issuer bid in the open market, which would consume about 2 bln usd at the current stock price.
‘Although the company has fairly high capital expenditure requirements of 1.3 bln usd in 2008, we don’t expect the share buyback to affect the company’s leverage as it should generate strong cash flow from operations in 2008 based on high fertilizer prices,’ S&P said.
Our very own Ted Gottsegen said back on March 10th, There’s only one perfect stock – Potash Corp. (POT) that was back at $150 a share.
Like the human body can only lift so much weight (even with steroids) a stock can only go so high. But where will Potash stop? $250? $300? I say buy, buy, buy and worry about the steroid side-effects at a later date.
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 About Eric Cheshier (http://thestockmasters.com)
Eric is the Co-Founder of TheStockMasters.com and his love for investing started in his early teens. After trading stocks to supplement his income he began heavily trading options and knew then that stock research and analysis was his true calling. Eric can proudly say that by investing in the stock market he was able to turn a few thousand dollars into a portfolio that allowed him to pay his way through college and buy his first home before the age of 24. Investing has allowed Eric the time to work on various projects including running TheStockMasters.com and active day trading. |
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