Generally speaking, record sales are music to investor’s ears, unless of course, if that volume is accompanied by a 19% decrease in the price that the product commanded just a year ago. That’s exactly what Mosaic shareholders witnessed while listening to the company’s fourth quarter and full year earnings call. All told, a total of 2.6 million tonnes of potash, a vital nutrient in the agriculture industry, left Mosaic’s shelves in the quarter which trumped last year’s same quarter by 600,000 tonnes. While that’s all well and good for this quarter and fiscal year, it might not bode well for the next couple of years.
You see, potash is a fertilizer that doesn’t necessarily need to be reapplied on an annual basis because it tends to remain in the soil for up to three years. What that might mean for Mosaic and its peers is that this record demand might not be there if prices begin to rise over the next year or two. That being said, there are other fertilizers that could help buoy overall company sales if this is the case. For more, tune in to the video below.
Canada holds vast reserves of potash. Another resource that we are extremely well-endowed with is uranium – the key ingredient for nuclear power. Click here now to download our special FREE report “Fuel Your Portfolio With This Energetic Commodity”. We think you’ll be surprised at how bright the future is for uranium, how far these 2 stocks have fallen, and how quickly they could rebound. Click here now for the nuclear ride of your life!
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.
Fool contributor Taylor Muckerman has no position in any stocks mentioned at this time. The Motley Fool does not own any stocks mentioned at this time.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.