POTASH: Cyclicality Returns

10/02/08 01:20PM EDT
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
© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.