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Potash Corp. Of Saskatchewan - Dirt Cheap And Ready To Grow

Potash Corp of Saskatchewan is the largest fertilizer company in the world and has operations in Canada where half of the world's potash reserves exist.

A strong investment case can be made for investing in fertilizer companies based on macro trends such as population, longer lives, economic progress of EM population, and climate change.

Earnings appear stagnant and stock is overly punished providing a great long term entry point.

Potash Corp of Saskatchewan (NYSE:POT) is a fertilizer giant that mines, produces and sells industrial and feed products worldwide. The company operates in three segments: Potash, Nitrogen, and Phosphate.

Potash is a mined commodity and Potash Corp of Saskatchewan is well suited geographically to take advantage of the large reserves in Canada - which account for nearly half of the world's reserves.

(Source: Potash Corp IR)

Potash Corp is the largest fertilizer company and competes with Mosaic Co (NYSE:MOS), CF Industries (NYSE:CF), Agrium Inc (NYSE:AGU), Israel Chemicals (NYSE:ICL), Sociedad Quimica y Minera de Chile (NYSE:SQM), Intrepid Potash Inc (NYSE:IPI) etc.

Corporate Profile (from Yahoo! Finance)

Potash Corporation of Saskatchewan Inc., together with its subsidiaries, produces and sells fertilizers and related industrial and feed products worldwide. The company operates in three segments: Potash, Nitrogen, and Phosphate. It mines and produces potash, which is primarily used as fertilizer. The company also offers solid and liquid phosphate fertilizers; animal feed supplements; purified phosphoric acid, which is used in food products and industrial processes; hydrofluosilicic acid; and silicon tetrafluoride. In addition, it produces nitrogen fertilizers and nitrogen feed, as well as industrial products, including ammonia, urea, nitrogen solutions, ammonium nitrate, and nitric acid. The company owns and operates five potash mines in Saskatchewan and one potash mine in New Brunswick. It holds the right to mine 774,861 acres of land in Saskatchewan; and 58,263 acres of land in New Brunswick in Canada. The company sells its fertilizers to retailers, dealers, cooperatives, distributors, and other fertilizer producers; industrial products primarily to chemical product manufacturers; and feed products to feed manufacturers. Potash Corporation of Saskatchewan Inc. was founded in 1953 and is headquartered in Saskatoon, Canada.

The Case for Investing in Fertilizer Companies

The fertilizer industry provides an excellent opportunity for investors looking to benefit from large global macro-level trends. The world population continues to grow and with that comes the added stress on resources such as arable land, water table, pests and land overuse. In order to keep up with the demand of feeding the world, farmers have had to resort to using genetically modified crops coupled with liberal use of fertilizers.

There are plenty of reasons to be bullish about the fertilizer industry including:


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