Thursday, August 7, 2014

Potash: Still Not Liking Market Fundamentals


Summary

  • Potash Corp generally exceeded Q214 estimates based on strong cost controls.
  • The potash market to remain under pressure even if new growth targets are hit.
  • Investors should consider the recent rebound in Potash Corp a gift that is contrary to the long-term fundamentals in the main fertilizer.
The latest quarterly report from Potash Corp (NYSE:POT) shows some improvements in the fertilizers markets. In a previous article, the question was whether any value existed in the potash stocks going forward. The real concern is that large miners like Rio Tinto (NYSE:RIO) and BHP Billiton (NYSE:BHP) have sights clearly on establishing potash mines and expanding market in this area due to historically higher margins.

Read the full article at Seeking Alpha.


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