Friday, April 4, 2008

Mosaic quarterly profit skyrockets. AND: Announces Additional Potash Expansions (MOS)

I can't remember the last time I saw the word skyrockets in a Reuters headline. Grain [sic] of salt: The market's reaction to Monsanto's numbers on Wednesday got me thinking about the psychology of market players in the ag stocks, in a word, schizo. The day before MON's release the stock traded down ( low: $104.60), Wednesday it head-faked lower and closed up, today it looks to open around $120. I get nervous when the market is nervous; you can always fade fear and go long or take a ride on the mo-mo express but right now I'm not sure I'm a lot of help.
If it's true that there are three kinds of people; Those who make things happen, those who watch what happens and those who ask "What happened", I'm in the second group but thinking of moseying over to the third. Sorry.

Here's the story from Reuters:
Crop nutrient producer Mosaic Co (MOS.N: Quote) said on Friday its fiscal third-quarter earnings soared, driven by increased worldwide demand and prices for fertilizers....

And via Earth Times comes this press release:

The Mosaic Company announced today a long term potash capacity expansion plan in Saskatchewan, Canada in response to continuing robust global demand for potash. The total expansions announced, together with those announced in May 2007, are expected to increase Mosaic's annual capacity by approximately 5.1 million metric tonnes at an estimated average capital cost that is significantly lower than greenfield projects.

Upon completion of these expansions, Mosaic's total annual capacity will approximate 15.5 million tonnes, maintaining Mosaic as one of the premier potash companies in the world. The expansions are projected to occur over the next twelve years, with the first expansion production coming on line in 2009. Some of the expansions are already underway while others are in the planning and approval stages....More