hard to believe they were out sold by competitors, not sure what this means for the stock. hope there isn't production issues with lithium and iodine as that to me is the most important segments of their business. will have to see how the stock reacts. specialty plant nutrition was the highlight (also noted potash is about 3% of their potassium sales)
still think this company works for a longer time frame investor here.
Agree main issue is sales vs. competitors in iodine/lithium, where first is big proportion of profits and second is a key growth area (though only 11% of profits now). If SQM is low cost producer, they shouldn't allow much loss of share. Specialty Ag is the other big driver of this stock. Potash is 26.6% of revenues and 22% of profit, so a modest price decrease isn't main issue. I don't think potash is going to near $300/ton, as some have claimed.
I think fundamentals are solid, but I thought that around $40 too. Company needs to move revenue up and lower capex (which they plan to), and stock should respond. Read full 2Q release on investor site to do your own due diligence. I've been in this stock since the nineties.
He said "we are a minor player in this market, and our sales represent less than 3% of world demand; we have no influence over international prices of this product."
NOTHING ABOUT Potosh sales are only 3% of SQM sales
I like the management team in place and the assets owned. Management seems experienced and conservative which may not seem exciting, it is why SQM has lasted over the years and why SQM will be around for many years to come. Just think of all the S & P 500 companies SQM has outlasted since 1968!
Nothing wrong with this company except we are seeing a huge bailout by funds before the end of the quarter(9/30). They are well run and diversified while being a low cost producer. Their location is good too. The stock is ludicrously oversold(14 week RSI is 6.73). That said, the upside for the next year is probably no more than $34, but in the future years it could have a lot more upside. They must pay out 30% of earnings so the dividend is predictable and you share in any earnings growth. Nothing is for certain but, this is definitely worth being in at this value. One other thing pounding the share price is the mass exodus of investment dollars from the emerging markets which has nothing to do with SQM fundamentals.