NW-Bound
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 3, 2008
- Messages
- 35,712
In the thread here, Rick_head said he wanted to revive a thread on POT (Potash of Saskatchewan). I don't know if this is the one he mentioned, but I am reviving it anyway.
I have traded POT a few times, and made good money during the commodity run-up prior to the 2008-2009 crash. Then, I bought it back in 2011 and 2013, and it did not do well this time. I bailed out at the price of $27 two months ago. The mention of it caused me to look at it again, and it is now at $20. Time to reload on it?
I find it interesting not because of the dividend yield of 7.72% (no guarantee that it would not get cut), but rather because it has been pummeled far worse than the market. The outlook for potash is for the price to drop to US$250/metric ton next year, compared to $300 today.
But is that bad news already baked into the stock? It was as high as $80 in 2008, and around $35 just 2 months ago. At the current price of $20 and a P/E of 11, it is very appealing. I may take a nibble on Monday.
I have traded POT a few times, and made good money during the commodity run-up prior to the 2008-2009 crash. Then, I bought it back in 2011 and 2013, and it did not do well this time. I bailed out at the price of $27 two months ago. The mention of it caused me to look at it again, and it is now at $20. Time to reload on it?
I find it interesting not because of the dividend yield of 7.72% (no guarantee that it would not get cut), but rather because it has been pummeled far worse than the market. The outlook for potash is for the price to drop to US$250/metric ton next year, compared to $300 today.
But is that bad news already baked into the stock? It was as high as $80 in 2008, and around $35 just 2 months ago. At the current price of $20 and a P/E of 11, it is very appealing. I may take a nibble on Monday.
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