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Buy Potash. You must be smoking POT!

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I first heard of Potash Corporation last year from Mad Money ,when I used to watch the show. At the time I heard of POT,I did some research and found what I think is a much better investment than POT. Let me share some facts about POT and then I'll give you some facts about my choice. POT is located in Saskatchew,Canada and was formed in 1953 in Sakastoon,Canada. POT makes a variety of agricultural products including solid and liquid phosphate fertilizers,urea,nitric acid and numerous other animal supplements and fertilizers. POT used to ship solely to North America,but now ships a lot of products to China.

My selection as a better investment is CF Industries Holding. CF was founded in 1946 and is headquarted in Deerfield,Illinois. CF produces and distributes an array of fertilizers and has formed to divisions,Nitrogen Fertilizers and Phosphate Fertilizers. Nitogen Fertilizer Division produces urea and ammonia. The Phosphate Fertilizer Division produces diammonium phosphate and monnoammonium phosphate used as agriculture fertilizers.


Now lets compare the two companys:

POT CF

Market Cap $53B $6B

Shares 315M 56M

PE 56 16

EPS $2.83 $6.57

Dividend .40/.30% .40/.40%

ROE 31% 33%

ROI 22% 31%

CashFlow 23% 18%

4Q2007 Rev. $1.43B-Up 40% $852M- Up 62%


And the share appreciation for 2007 was: POT-202%

CF- 171%

Im my opinion no matter how you slice it I think CF is a better investment. I welcome any comment or insight about my selection.




Comments (3)

don ferk:

Don,
Take a gander at Yara Int'l ( YARIY : OTC Other ), The Andersons Inc ( ANDE : NASDAQ ) & / or LSB Industries ( LXU : AMEX )

YARIY is the Swedish equivalent of MOS or AGU.
ANDE is a Take-Over candidate for Vertical Integration Consolidation by such players as AGU ( which already bought Clarke Feed Stores and is now in the process of buying UAP ).
It's the DISTRIBUTION SYSTEM, stupid !!!

LXU is mis-understood because of it's Environment Control Bizz ( HVAC ). But you may see it has a lot of fine quality as an Ammomia / nitrate producer.

Don L. Ferk

don ferk:

Don,
follow-up here
YARIY web site http://www.yara.com/en/index.html

http://www.yara.com/en/index.html

I doubled my money in a year on this one. It has a lot to go. It just acquired Kemira GrowHow and is in a JV with Praxair in the industrial gas bizz ( like CO2 for Soda Fizz ).
CO2 is produced as a by-product of ammonia manufacture.

Don L. Ferk

PS : I wrote a longer more explanatory comment but it didn't go through - I got an Error message for not being "Registered". Actually I think that I was "Timed-Out" - it took too long to get my ' fertilizer ' together.

Raju Dantuluri:

Thanks for high lighting a new stock.

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