Lower crop prices have a way of turning institutional investors and
analysts into short-termers when it comes to ag input companies like Mosaic (NYSE:MOS),
even though the long-term need to feed more people (and use more crop
nutrients to do so) remains in place. Mosaic is one of the global
leaders in both phosphates and potash, but its place on the cost curve
makes it more sensitive to price than global rivals like Potash (NYSE:POT) or OCP
and the markets are jittery about oncoming supply expansion
(particularly in potash). Although I think Mosaic is basically an okay
stock for the long haul, I'd rather get my exposure to ag through less
price-sensitive companies Monsanto (NYSE:MON) (which I own) or cheaper nutrient plays like Yara (OTCPK:YARIY) (which I recently profiled here).
Follow this link to the full article:
Can Mosaic Get The Sustainable Price Leverage It Needs?
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