The Successful Investor Hotline – Friday, July 13, 2012

Article Excerpt

POTASH CORP. OF SASKATCHEWAN, $44.49, Toronto symbol POT, is the world’s largest fertilizer producer. It has six potash mines in Saskatchewan and one in New Brunswick. The company sells its potash to customers outside of Canada and the U.S. through Canpotex, a marketing and exporting firm that is equally owned by Potash Corp., Agrium (see below) and Mosaic Co. (New York symbol MOS). This week, a U.S. court agreed to hear a lawsuit that accuses Canpotex, as well as potash producers in Russia and Belarus, of colluding, or working together, to cut production and push up prices. However, cases like this are often difficult to prove. Meanwhile, new mines under development in western Canada could put pressure on potash prices, but it will take years for them to start up. For now, rising demand for better food in fast-growing countries like China, India and Brazil should continue to increase prices. Potash Corp. is a buy. Potash Corp. was recently covered in The Successful Investor Hotline…