Reportedly, Potash (POT) is considering joining forces with global firms that would be able to present an offer to compete with BHP Billiton's (BHP) $38.6 billion bid.

According to The Wall Street Journal, people "familiar with the matter" stated that there could be a global consortium in the works to make a counteroffer for Potash. BHP has gone straight to Potash shareholders with its offer of $130 per share.

Continue reading A Bidding War for Potash?

A Bidding War for Potash? originally appeared on BloggingStocks on Fri, 20 Aug 2010 12:00:00 EST. Please see our terms for use of feeds.

In the wake of the BHP Billiton's (BHP) failed $39 billion offer and its new hostile $40 billion takeover bid for Potash Corp. of Saskatchewan (POT), agricultural fertilizer companies, including CF Industries Holdings (CF), are starting to look pretty juicy to investors.

Fertilizer companies have been struggling during the past few years as cash-strapped farmers have been pulling back on their purchases, but the tide appears to be changing.

With rising prices for crops like wheat and corn, it is starting to look like it is going to be a really good year for U.S. farmers, which means they are going to have plenty of money to reinvest in new machinery and more fertilizer.

Continue reading CF Industries Growing as Fertilizers Heat Up

CF Industries Growing as Fertilizers Heat Up originally appeared on BloggingStocks on Wed, 18 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

Continue reading Potash Turns Down BHP Billiton Takeover Offer

Potash Turns Down BHP Billiton Takeover Offer originally appeared on BloggingStocks on Tue, 17 Aug 2010 08:30:00 EST. Please see our terms for use of feeds.

Continue reading Monsanto: Pull-back is Buy opportunity

Monsanto: Pull-back is Buy opportunity originally appeared on BloggingStocks on Tue, 06 Oct 2009 18:00:00 EST. Please see our terms for use of feeds.

Continue reading Potash Corp. lowers its earnings forecast

Potash Corp. lowers its earnings forecast originally appeared on BloggingStocks on Mon, 21 Sep 2009 10:30:00 EST. Please see our terms for use of feeds.

I was reading through some articles this weekend, when I found one from BusinessWeek, questioning the viability of herbicide producer Monsanto Co. (NYSE: MON).

The article focuses on the past six months, a period when MON shares have lagged behind the broader market, and then wonders if the stock is still a viable long-term investment. The story was prompted by last Thursday's earnings forecast for $3.10 to $3.30 per share in fiscal 2010, which was well short of the $4.10 that the Street expects.

Continue reading When will Monsanto regain its Street-beating ways?

When will Monsanto regain its Street-beating ways? originally appeared on BloggingStocks on Mon, 14 Sep 2009 12:00:00 EST. Please see our terms for use of feeds.

Weak quarterly sales led to a substantial drop in third-quarter earnings for fertilizer firm Mosaic (NYSE: MOS). After the closing bell yesterday, the phosphate and potash producer reported third-quarter earnings of 13 cents per share, far lower than last year's same-quarter earnings of $1.17 per share.

Not only were the results far worse than a year ago, but they missed the Street's expectations for earnings of 24 cents per share. The current results did include a gain of $47.1 million (seven cents per share) for foreign currency transactions.

Continue reading Mosaic reports lower third-quarter earnings

Mosaic reports lower third-quarter earnings originally appeared on BloggingStocks on Wed, 08 Apr 2009 10:30:00 EST. Please see our terms for use of feeds.

Mosaic

Continue reading No more wild rides up ahead for Mosaic -- just earnings growth

No more wild rides up ahead for Mosaic -- just earnings growth originally appeared on BloggingStocks on Fri, 03 Apr 2009 11:10:00 EST. Please see our terms for use of feeds.

Continue reading Sunny days will return for Potash

Sunny days will return for Potash originally appeared on BloggingStocks on Tue, 31 Mar 2009 17:50:00 EST. Please see our terms for use of feeds.

The Mosaic Company (NYSE: MOS), the combined Cargill Crop Nutrition and IMC Global Inc., began trading as a Fortune 500 company immediately after its 2004 IPO, and became a dominant player in the fertilizer business.

In just a few short years, Mosaic would be in prime position to ride a global boom in agricultural crop demand that resulted in its shares skyrocketing more than $130 from trough to peak.

From a valuation standpoint, the move higher was completely justified and rational -- up to a point. When the hedge fund momentum investors climbed aboard, astute investors knew that the rapid rise was due for a correction.

The stock sold off hard during the summer, which culminated in a complete washout due to the credit crisis and global economic meltdown. MOS shares fell back to the mid-$30s.

As is often the case, the selling went too far and had more to do with forced liquidations instead of rational valuation metrics.

Continue reading Jump on Mosaic (MOS) before the momentum crowd returns

Jump on Mosaic (MOS) before the momentum crowd returns originally appeared on BloggingStocks on Wed, 07 Jan 2009 11:26:00 EST. Please see our terms for use of feeds.

Continue reading Agrium remains agreeable

Agrium remains agreeable originally appeared on BloggingStocks on Tue, 24 Jun 2008 12:25:00 EST. Please see our terms for use of feeds.

Continue reading Some agricultural stocks to consider from BusinessWeek

Some agricultural stocks to consider from BusinessWeek originally appeared on BloggingStocks on Fri, 20 Jun 2008 15:17:00 EST. Please see our terms for use of feeds.

With crude oil prices soaring, shares in coal and fertilizer companies have also been climbing for the past year. Barron's offers a survey of the momentum plays, pointing out some opportunities and risks when investing in coal and fertilizer stocks.

Talking about risks, Barron's underlines the fact that it can be difficult for investors to put their hard earned money into a stock that is already trading near its highs. But as they say, the trend is up unless proven otherwise, and we might take this into account when picking our trades. For example, back in April, it looked like Mosaic Co. (NYSE: MOS) was facing technical weakness, but this did not last long and the company was able to rebound.

Now let's take a took at the coal sector. Data shows that the Dow Jones U.S. coal index gas gained more than 50% for the past year. While James River Coal Co. (NASDAQ: JRCC) has quadrupled this year, Peabody Energy Corp. (NYSE: BTU) has been seeing some weakness, and this might be a sign that the sector could face tough times ahead. The first concern tied to supply and demand appeared for Peabody when we began to notice that volume on rally days slipped, while volume on declining days has increased.

Continue reading Barron's offers a survey of momentum plays in hot sectors

Barron's offers a survey of momentum plays in hot sectors originally appeared on BloggingStocks on Tue, 17 Jun 2008 15:56:00 EST. Please see our terms for use of feeds.

Fab Five: 5 promising stocks for patient investors originally appeared on BloggingStocks on Thu, 05 Jun 2008 14:50:00 EST. Please see our terms for use of feeds.

Mosaic (NYSE: MOS) shares are falling with other fertilizer-makers after an article in The Wall Street Journal this morning detailed skyrocketing fertilizer prices that are squeezing small farmers. The article said that Sen. Byron L. Dorgan (D-ND) will ask the Federal Trade Commission to scrutinize the industry's business practices. It also quoted the president of the North Dakota Farmers Union accusing fertilizer producers of price-gouging. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on MOS.

After hitting a one-year low of $32.23 last May, the stock hit a one-year high of $143.32 in April. This morning, MOS opened at $118.96. So far today the stock has hit a low of $113.64 and a high of $119.79. As of 12:00, MOS is trading at $113.74, down $6.12 (-5.1%). The chart for MOS looks bullish and deteriorating slightly.

For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $150 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 4.2% return in eight weeks as long as MOS is below $150 at July expiration. Mosaic would have to rise by more than 31% before we would start to lose money. Learn more about this type of trade here.

Continue reading Mosaic (MOS) falls on price gouging allegations

Mosaic (MOS) falls on price gouging allegations originally appeared on BloggingStocks on Tue, 27 May 2008 14:44:00 EST. Please see our terms for use of feeds.

Farmers are paying more for supplies to grow their crops and they're passing those rising costs onto consumers. The Wall Street Journal reports that farmers paid 65% more for fertilizer in April 2008. Fuel, the second-fastest rising cost, is up 43%. And seed prices have risen 30%. But you can hedge your rising food costs by investing in companies that profit from rising fertilizer prices.

Farmers say too much market power is concentrated in the hands of a small group of companies in the U.S., Canada and Russia that dominate global production of potash and phosphate. Phosphate is up 174% from $365 last year to $1,000 a ton. The price of a ton of potash is up 204% from $230 to $700. Thanks to a rise in natural gas prices, the price of Urea, a nitrogen fertilizer, has doubled to $600 a ton.

Should you hedge your rising food prices by buying stock in Potash and seed suppliers? Potash Corp. (NYSE: POT) and Mosaic Corp. (NYSE: MOS) have benefited from the rising price of Potash. And Monsanto Co. (NYSE: MON) is the biggest seed company out there. They have benefited in the past year -- with stock prices up 202%, 279%, and 103% respectively. But will they keep rising?

Continue reading Profit from peaking potash and phosphate prices

Profit from peaking potash and phosphate prices originally appeared on BloggingStocks on Tue, 27 May 2008 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Three stocks for the food boom: Potash, Mosaic, Agrium

Three stocks for the food boom: Potash, Mosaic, Agrium originally appeared on BloggingStocks on Fri, 25 Apr 2008 17:09:00 EST. Please see our terms for use of feeds.

Continue reading Mosaic (MOS) third-quarter profit jumps on higher prices

Mosaic (MOS) third-quarter profit jumps on higher prices originally appeared on BloggingStocks on Fri, 04 Apr 2008 14:33:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• A memo sent by Delta Air Lines Inc (NYSE: DAL) to the company's employees regarding Delta's merger talks with Northwest Airlines Corporation (NYSE: NWA) stated that that no "potential transaction meets all [of Delta's] principles." The memo, the Wall Street Journal reported, is seen as a sign that merger talks between Delta and Northwest have stalled.
• A group of 14 hospitals and the Securities Industry and Financial Markets Association, a Wall Street trade group, asked the SEC to buy back the debt they had issued, the Wall Street Journal also reported.
• German lender HSH Nordbank has filed a lawsuit against UBS AG (NYSE: UBS) for allegedly maneuvering to saddle the German bank with troubled securities. HSH Nordbank contends that UBS sold it $500M in complex investments, which a UBS hedge fund later used as a receptacle for troubled subprime-mortgage securities, according to the Wall Street Journal.

• According to FAO Newsroom, world fertilizer production is expected to outstrip demand over the next five years and will support higher levels of food and biofuel production.

Newspaper wrap-up: Talks between Delta and Northwest hit an impasse originally appeared on BloggingStocks on Wed, 27 Feb 2008 08:00:00 EST. Please see our terms for use of feeds.

Continue reading With Mosaic (MOS), it's a quilt of customers covering the world

With Mosaic (MOS), it's a quilt of customers covering the world originally appeared on BloggingStocks on Mon, 14 Jan 2008 16:50:00 EST. Please see our terms for use of feeds.