Jim Letourneau's Blog

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Saskatchewan Stock Extravaganza!!

Potash Corporation of Saskatchewan Posted by Hello

Saskatchewan has more going for it than the Roughriders. They have uranium, oil and gas, wheat, and potash. Potash Corporation of Saskatchewan made a new high today on a morning upgrade from Merrill Lynch. I like the long term outlook of the fertilizer business. China's demand for raw materials may wane in an economic slowdown (or crash - which they are setting up for) but they will still want to eat. They "triple crop" in China so agricultural productivity is dependent on the use of fertilizers. Food shortages are looming and if China starts importing food there are 1.3 billion hungry mouths to feed. Prices of food and agricultural inputs are likely to rise.

I don't get warm fuzzies about the near-term upside of POT.TO when I look at the chart but the theme is intact.

There are a couple of other companies with large evaporite mineral (potash and magnesium) deposits (in politically risky countries) that I'll be writing about in the next Big Picture Speculator.

I don't own POT.TO