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Tuesday, August 17, 2010

Cramer touts fertilizer

Potash. Unbelievable. And don't sell it. There are multiple buyers of this company. The stock deserves to go out at at least $150, well below its top in 2008. First, it takes a huge amount of time and money to recreate POT's business. It is almost impossible. Second, the cycle has turned, and the worldwide shortage of crops is quite evident. Third, inventories are leaner than they have been in a very long time. Fourth, scarcity -- there is a tremendous scarcity of fertilizer properties because of the endless consolidation. A commodity business has been turned into a proprietary one thanks to the difficulty of procuring different kinds of fertilizer and the tight collection of merged players. BHP Billiton's trying to become an integrated play of high-quality commodities....

How about Mosaic then??  Why own 64% when you can own all of it??

Especially when the fundamentals are turning?

I guess that happens.


People fertilize when you don't live in a dustbowl!

And the Wall Street dust bowl, was just Oz behind the curtains!

And like clockwork, you had Prechter touting Dow 1000, Rosenberg touting Dust Bowls, El-Erian warning of deflation, and Roubini running with his tail between his legs!

1 comment :

Anonymous said...

I like the matching fingers of the two Oz's!