Record Sales Volumes Not Always a Good Thing

Mosaic’s volumes were up, but prices were down. Find out what this means for the industry’s future.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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.

Follow us on Twitter and Facebook for the latest in Foolish investing.

 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.        

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

growing plant shoots on stacked coins
Dividend Stocks

2 Oversold TSX Dividend Stocks to Buy Now and Own for 25 Years

These top TSX dividend stocks look oversold and now offer attractive yields for TFSA and RRSP investors.

Read more »

money cash dividends
Investing

Passive-Income Power: How to Make $105/Week TAX FREE in a Bear Market

Investors may want to pursue a passive-income strategy in this bear market by snagging dividend stocks like Freehold Royalties Ltd.…

Read more »

Money growing in soil , Business success concept.
Energy Stocks

3 Growth Stocks up +30% in 2022

These three growth stocks are up over 30% in 2022 alone but have come down in the last few weeks…

Read more »

Oil pumps against sunset
Energy Stocks

2 Energy Stocks That Jumped Over 60% This Year

Consider investing in these two energy stocks amid the recent pullback after putting up stellar gains earlier this year.

Read more »

Profit dial turned up to maximum
Dividend Stocks

RRSP Investors: 2 Undervalued TSX Stocks to Buy Now for Total Returns

Top TSX dividend stocks are now on sale for RRSP investors seeking attractive total returns.

Read more »

TFSA and coins
Dividend Stocks

2 Beaten-Down Stocks to Buy for Your TFSA

Two beaten-down, but high-yield TSX stocks are profitable options for TFSA investors.

Read more »

Volatile market, stock volatility
Stocks for Beginners

3 Top TSX Stocks to Buy in Volatile Markets

Sitting on cash? Consider these three TSX stocks for the long term.

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

Inflation Soars to 7.7%: 1 Dividend Stock to Buy Now

Enbridge (TSX:ENB)(NYSE:ENB) stock looks like a magnificent dividend stock to help Canadians deal with inflation at 7.7%.

Read more »