This post is part of a special annual report -- Top Stock Picks '09 -- in which TheStockAdvisors.com asked 75 leading newsletter advisors to select their favorite investment for the new year.
"Potash Corp. of Saskatchewan (NYSE: POT), the world's largest integrated fertilizer company, is my top pick for 2009," says long-term growth stock specialist Dennis Slothower.
In his Stealth Stocks, he explains, "If you are an aggressive investor looking for a stock that has tremendous potential under an Obama massive stimulation program, Potash has significant potential."
The advisor continues, "POT is the largest producer of potash worldwide by capacity. In 2007, it estimates its potash operations represented 17% of global production and 22% of global potash capacity.
"The company is the second largest nitrogen producer worldwide by ammonia capacity. In 2007, POT estimates its nitrogen operations produced 2% of the world's ammonia production. It is also the third largest producer of phosphates worldwide by capacity.
"In 2007, it estimates its phosphate operations produced 6% of world phosphoric acid production. Its nitrogen operations involve the production of nitrogen fertilizers and nitrogen feed and industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate and nitric acid.
"POT's phosphate operations include the manufacture and sale of solid and liquid phosphate fertilizers, animal feed supplements and industrial acid, which is used in food products and industrial processes.
"If you are an aggressive investor looking for a stock that has tremendous upside potential under an Obama massive stimulation program, Potash could be close to bottoming and it has significant upside potential.
"In any case, this is one stock to put on your watch list. This is a seasonal stock, as it peaks in the summer after the planting season and bottoms in the winter as farmers get geared up to fertilize their fields in the spring. This is an extremely undervalued stock.
"According to my numbers, POT should be selling in the mid-$90s over the next three to five years. It is currently trading in the high $50 range, so POT has large upside potential.
"As a strategy, we recommend that investors place a sell stop at 25% below their purchase price, to prevent against undue risks. As the stock rises, continue to raise your stop so that you are trailing each weekly close by 25%."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Entrepreneur's Journal: Putting together a solid sales contract
The week in preview: Earnings from Walmart, Macy's, and other retailers
Six top trades for the rest of 2009
Reader Comments (Page 1 of 1)
1-04-2009 @ 6:33AM
Q said...
Oh really. Closing price Pot on January 2 was 77.35. You posted on Jan 3 "It is currently trading in the high $50 range". What are you trading in, euros? Friends don't let friends post drunk.
1-04-2009 @ 11:35PM
p said...
yo steven.like Q said, (pot USA) was $50 on 12/4 and is @ $77.35 according to Dennis "Sloth"ower. did you used to work for Madoff? You are using a computer to put out your journalistic post right, not 3rd class mail from the Ukraine? what's up with this "real time" blog site?