Thursday, March 11, 2010

Potash (POT) Raises Guidance

Reader Abraham notified me that Potash (POT) raised guidance after the bell.... hold on, need to get this egg off my face to read the press release. 

Ah yes... now I can see.  It would not of affected us much portfolio wise, as we sold a very small position (higher than today's close) in the stock earlier this week waiting to deploy that cash into a coking coal or iron ore stock, but it's good to see.  The stock is up 7% in after hours; if the after hours price holds this will be yet another stock touching Jan 2010 highs.  A move over that level creates yet another "double top breakout".  These fertilizer stocks have been over promising and under delivering for about 6 quarters, so this is an about face.

Press release here.
  • Potash Corporation of Saskatchewan Inc. (PotashCorp) today stated that first-quarter earnings are estimated to be in the range of $1.30-$1.50, well above the initial guidance of $0.70-$1.00 per share(1) provided on January 28, 2010.
  • 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. Any revisions to annual guidance will be addressed in our first-quarter news release issued on April 29, 2010.
  • "While we know that growth does not follow a straight upward line, we believe the increase in potash sales volumes this quarter represents the beginning of a return to long-term growth in demand."
Looks like analysts were in for mid 90 cents area so a nice increase.

No position

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