just FYI, a pps at $38 would be roughly 12% under the BHP of (presplit) $130/shr offered more than a year ago and was considered to be 'low-ball'. Since that tender offer from BHP, Potash corp has grown significantly and had several record quarters of earnings growth. If we assume they will make this year close to $3.80/shr and trade at P/E of 12 then the fair price per share would be at about $45.60/shr. At a pps of $38, the stock would be trading about 18% or so below fair value assuming those EPS estimates and low P/E. The overall market is trading btw a 12 and 14 P/E multiple on most stocks right now, and Potash corp has the potential for larger growth (PEG) valuation than most of the stocks on the market but is trading at a 12 or 13 P/E. Those conservative EPS estimates were stated as guidance from the company. Just FYI... :D
Is it accurate to say that those who know this co and sector well see POT as a solid/"safe" investment as long as you're willing to withstand the "idiocy" of various mkt movements? I'm in at low 45's and willing to wait for 47 or higher. Am I way off base?
If you're an investor and you have no conviction in the stock don't invest in it. Buying puts to hedge your side or buying insurance...you're fooling yourself. You might as well give your money away Either stay in or get out!