Potash Corp Shares Could Be A Buy At Current Levels
Mar 12, 2010 Company News, Earnings, Stocks On The Move, Technical Analysis
Fertilizer maker Potash Corp of Saskatchewan (POT) added $8.34 or 7.13% to $125.27 on Friday March 12, after the company on Thursday evening, raised its current (first) quarter guidance to $1.30-$1.50 per share, which is a substantial improvement from the company’s own very recent estimates of $0.70-$1.00 per share, that was provided just six weeks ago, on January 28.
With analysts bound to question why the company would revise so sharply in so short a period, the company’s explanation was, “the upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.”
The dramatic improvement in the company’s fortunes, make the shares a buy, although we are now against resistance, with a double top formation in play at current levels. As such, we would look for a break above current levels, before going long the shares.
