POTASH: Cyclicality Returns

Mosaic (“MOS”), the world’s second largest fertilizer company, reported results this morning and missed consensus estimates and reduced forward production. While the “It’s Global This Time” enthusiasts have been arguing that fertilizer stocks are not global, a reduction of production by MOS seems to suggest otherwise and the stock is currently down more than 30% as a result. We have attached below a 5-year chart of POT, including our last post on the stock in which we which suggested that if “cyclicality” were to come back into play, so would gravity in POT’s stock price. It’s global this time, indeed.

Daryl G. Jones
Managing Director