Wednesday, September 3, 2008

Potash Corp. Warns Strike May Impact Deliveries (POT). And: RBC Capital Re-its $375 Target

From StreetInsider:
In a recent research note on Potash Corp. of Saskatchewan, Inc. (NYSE: POT), JPMorgan said the company warned North American customers that a strike may impact deliveries, which could further limit supply.

The firm said, absent a settlement, Potash Corp may soon be forced to declare force majeure, which allows a company to miss delivered because of circumstances beyond its control....MORE
From Zacks via the EarthTimes:

Potash Still Considered Buyable

...Potash Corp. (NYSE: POT) has leverage in higher fertilizer application rates, higher crop plantings, increasing demand for biofuels and rising crop prices. The company is located in low cost areas and its financials are solid. Hence, we rate the stock a Buy with a target price of $250. This is 18.9x our 2008 estimate.

Potash Corporation enjoys significant cost advantage with regard to raw materials. All potash produced by the company in Saskatchewan is in the area, where extensive potash deposits are found. Moreover, the company has lower cost nitrogen operations in Trinidad due to the long-term, lower-cost gas contracts with Natural Gas Company of Trinidad and Tobago Limited as well as a proximity to the U.S. market....

From Notable Calls:
- RBC Capital is positive on Potash (NYSE:POT) reiterating their $375 tgt telling to look for sig. potash price increases in China.
From the Vancouver Sun:
Hurricane Gustav spares platforms, smashes TSX instead

Hurricane Gustav ripped a few shingles off Canadian stock markets Tuesday, blowing the S&P/TSX Composite over for its biggest down day since January.

Crude oil prices plunged, taking a bite out of the commodity trade, as the U.S. Coast Guard reported no structural damage to oil platforms in the Gulf of Mexico, and no spills.

Investors sold positions in grain, fertilizer and precious metals, buying U.S dollars and U.S. long bonds....