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Potash Corporation of Saskatchewan Inc. Message Board

  • investora2z investora2z Mar 22, 2013 1:02 PM Flag

    Potash prices

    In 2012, the revenue was $7.43B, and net income was $2.08B. POT is hovering just below the 200 and 50 day moving averages (around $41), and may find that as a hurdle to climb. The stock has fallen from $62 levels in Feb 2011, and the stock has taken support around $38 levels over last one year. The multi-year chart of the company indicates the rewards which investor can reap if one buys such stocks at the appropriate time. From around $3 levels in 2000, the stock has delivered exponential returns. The major uptrend started in 2005. These mining companies remain dormant for long periods before taking off, and then they are difficult to catch. The acquisitions, surveys, resource estimation etc. take time, and there is a long lead time before production starts. However, the multiplying effect is best encashed if investment is in the early stage of the company's life. There are several other such companies like Passport Potash (PPRTF) which are presently at a stage where POT was, maybe, in 2002. These companies are available nearly for free, and patience may result in good capital appreciation. Coming back to POT, the prices of Potash, which were on a downtrend, are likely to find support at current levels and stabilize. The reason could be the order bagged by a cartel comprising POT and other companies from China and India for total 2.1 million tonnes. The average price for the order is around $415 per tonne, and the delivery is in June 2013 and January 2014. The prices are higher than the current prices of potash and hence will provide support and stability. Decline in production and inventory, and also increase in domestic US and export demand will help provide a fillip to the prices. This will help POT and other companies in better realizations.

17.61-0.62(-3.40%)Apr 28 4:02 PMEDT