From Potash's (POT) standpoint, it's a growing world

Agriculture and agriculture services stocks are likely to remain star performers in the immediate years ahead, given the agriculture boom in emerging markets, and one preferred company worth an evaluation is Canada-based Potash Corp. (NYSE: POT).

Potash is an integrated producer of fertilizer, phosphate, and nitrogen, which is used in fertilizer and in industrial/consumer products.

Analysts really like POT's 12.9-million-ton potash production capacity, which represents an impressive 20% of the world's potash capacity.

Further, as one might sense with an emerging-market agriculture boom, sales have been robust, margins are solid, and the company has some price power: it's likely that price hikes will follow again in 2008, on top of price increases in 2007. The Reuters F2007/F2008 EPS consensus estimates for POT are $3.23/$5.50.

The risks? Analysts are keeping an eye on raw material and labor costs. A global economic slowdown would also obviously hurt POT's results. POT shares have also had a remarkable run in 2007, rising more than 200%: shares are vulnerable to large-dollar pull-backs, but those will be mild if POT continues to exceed EPS expectations.

Stock Analysis: Potash Corp. is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than two years should be rewarded from POT shares. Sell / Stop Loss if you were to purchase shares in this company: $85.

DISCLOSURE: Joseph Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.