Potash Dormant, but Not for Long
Source: Resource Investing News, Greg Sushinsky (6/22/10)
". . .the reasons not to buy are fairly short-term factors."
Fertilizer companies showed explosions in revenue and even more in earnings. Although potash stocks took off something like the Dutch Tulip Mania, there was something fundamental beneath their rocket-like rise from the launching pad: huge earnings increases.
It seems clear that the reasons not to buy are fairly short-term factors. Even the second half of this year shows potential for rebound in demand, and two-to-five years out, the continuing heavy need for potash will win out. Earnings and projected earnings are tremendous fundamental building blocks for the long-term value of the stock.