{"id":5650,"date":"2009-11-12T17:15:36","date_gmt":"2009-11-12T22:15:36","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=5650"},"modified":"2016-09-20T05:18:51","modified_gmt":"2016-09-20T09:18:51","slug":"potash-pot-death-of-ks-to-benefit-sector","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2009\/11\/12\/potash-pot-death-of-ks-to-benefit-sector\/","title":{"rendered":"Potash (POT) – Death of K+S To Benefit Sector?"},"content":{"rendered":"

Over the past few months, pricing for potash and other fertilizer products have been coming down. This is due not only to lack of demand, but because buyers are in the drivers seat and skillful at negotiation prices<\/a>. The news about K+S appears to confirm the trends that we have seen with potash and fertilizer companies. Said another way… they are not doing so well.<\/p>\n

As such, \u00a0 we have been shorting <\/strong>and covering <\/strong>Potash (POT) successfully between $101 and $85 recently.<\/p>\n

According to Bloomberg reports:<\/p>\n

K+S AG, Europe\u2018s biggest potash \u00a0 producer, needs to sell shares as early as this year to bolster \u00a0 finances after a slump in demand for the crop nutrient almost \u00a0 wiped out profit, UniCredit analyst Jochen Schlachter said. \u00a0 A rights offer would help the company retain its credit \u00a0 rating level after tumbling orders weighed on third-quarter \u00a0 earnings, Schlachter said. K+S\u2018s debut bond sale in September will give the company confidence it can convince equity \u00a0 investors to come forward with fresh funds, analysts said.<\/p><\/blockquote>\n

Earlier today Potash (POT) down by about 2%. By \u00a0 mid-day it started a mysterious rise into the afternoon. Hearing the strength in Agriculture names is being attributed to positive intraday comments out from a boutique firm on POT, MOS, AGU, CF, TNH. We are exiting the position Potash (POT) now, which we added yesterday. The cover was close to the same price that we shorted and believe that there may be more to this story and are not interested in getting caught in a short squeeze.<\/a><\/p>\n

\"potcover\"<\/a><\/p>\n

The move on volume was a \u00a0 signal that there is more to this story. Perhaps the rumor-mill is talking about takeovers again – like we saw with Mosaic (MOS) recently. Either way, it is a good time to reevaluate this name and step aside until whatever is brewing passes.<\/p>\n

___<\/p>\n

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Disclosure: Horowitz & Company<\/a> clients may hold positions of securities mentioned as of the date published.<\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past few months, pricing for potash and other fertilizer products have been coming down. This is due not only to lack of demand, but because buyers are in the drivers seat and skillful at negotiation prices. The news about K+S appears to confirm the trends that we have seen with potash and fertilizer […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[12,21,42],"tags":[486,497],"class_list":["post-5650","post","type-post","status-publish","format-standard","hentry","category-markets","category-short-ideas","category-stocks","tag-short-ideas","tag-strategy","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/5650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=5650"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/5650\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=5650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=5650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=5650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}