POT had been a stellar performer, hitting a high in the $120 region earlier this year. However, the stock is now in the process of bouncing between the $84 level and its 20-week moving average. The current situation is currently better than the way 2008 ended.
POT's rival, Mosaic (NYSE: MOS), may be a bit more affordable if you are looking to invest in the sector. MOS is currently fighting its way through the mid-$50 range, allowing for a better investing option. Moreover, MOS has plenty of room to run higher once the $55 level is toppled, as the next foreseeable resistance is in the lower $70 region, where its 20-month moving average lurks.
If you are looking to spend less money, MOS is a viable option. The problem is that the company is subject to the fluctuations of its larger sector brethren like POT. The biggest problem facing the entire sector is the lower fertilizer forecast and expectations for lower demand. If this is the case, the entire sector will struggle in the coming quarters.
Of course, there is the potential that the lowered forecast will lower expectations for the whole sector. Such a move would set up a situation where the sector as a whole could then benefit from simply matching expectations or barely scraping by forecasts. If you have your heart set on investing in the potash/fertilizer sector, then MOS may be the stock for you.
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