Mosaic Proves Potash & Fertilizer Are Back To Poop (MOS, POT, IPI)

Mosaic Co. (NYSE: MOS) is being slaughtered this morning. Any hopes that agriculture was going to be cool again are gone. The phosphate and potash producer’s earnings missed the bar by what might as well be a long shot.  Earnings were $2.65 per share on $4.32 billion in revenue.  Analysts expected earnings of $2.94 on $4.11 billion in revenue, according to First Call.  While these numbers are up massively from last year, it isn’t indicative of the wild growth of earlier that investors.

Mosaic is cutting production because global fertilizer and potash demand is cooling.  Mosaicshares are trading at a 52-week low, now down 30% at $46.80.  Its52-week trading range is $48.72 to $163.25.

The carnage is not at all isolated.  Potash Corp. of Saskatchewan, Inc.(NYSE: POT) is down a whopping 20% to $102.40, which is barely aboveits 52-week lows of $97.36.  Intrepid Potash, Inc. (NYSE: IPI) is downover 25% at $21.75, well under its post-IPO trading range of $26.22 to$76.24.

For a long time, fertilizer, potash, and agriculture was very cool.  Now, it is back to just what it smells like.  It’sbeing flushed down the drain, too.

Jon C. Ogg
October 2, 2008