Potash Corporation of Saskatchewan

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Potash Corporation of Saskatchewan Inc. (POT) – a company of which produces, and sells fertilizers and other related industrial and feed products of which are mostly sold in the United States, and Canada. Since mid May Potash (POT) has been trading near $50.00-$63.97. As of today 8/24/2011 Potash (POT) is trading below many analyst’s estimates. Potash (POT) has been given a target of $68.00 by many brokers, and a high target price close to $76.00. At close today $55.36  and with after-market trading of -$1.04, $54.28. With Potash (POT) dividend growth rate at 18% , and   anticipated earnings Growth rate to be in the range of 15%-17%, Potash (POT) is currently at a bargain levels. If Potash (POT) can Outperform analysis on EPS of which are anticipated to be in the range of $2.30 – $2.45 there could be a new high on the horizon.

Things to note!

  • 2011 Q2 earnings were reported to be $840 million, this being close to 96 cents per diluted share. In 2010 Q2 earnings were $480 million, close to 53 cents per share.  Over 40% increase year over year.
  • Margins increased from $411 million in 2010 to $793 million in 2011, mainly being from higher demands, and increase in prices. Over 45% increase year over year.
  • Sales in 2011 increased close to 61.6% or $2.3 billion.
  • Potash production also hit record highs increasing .4 million metric tons from previous year 2010 Q2.
  • Potash announced a $7.6 billion dollar expansion plan which will grow operational capacity at their main locations.  In the end this could increase operational capabilities to 17.1 million metric tons near or by 2015.
Currently Potash (POT) has a PoulTrend alert of which is being called for 8/25/2011.Potash(POT) is currently rated a BUY BUY BUY at under $54.50, and a HOLD HOLD HOLD.

Disclosure – Currently I do not hold a position  in Potash (POT) nor plan to initiate one in the next 72 hours.
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