Potash Corp. of Saskatchewan, Inc.
The deal was done at the going spot market price of $625 per tonne (delivered) -- more than double last year's contract price of $270 per tonne.
Canadian producers Potash Corp, Mosaic Co and Agrium negotiate export deals to India and China jointly at values that are usually similar or higher to the Russians.
This past week also witnessed yet another upgrade to the Potash rating and price target. Analyst Fai Lee of RBC Capital Markets upgraded POT from the previous designation of "Outperform" to "Top Pick". He also raised his price target to $250 from $195. At the time this represented close to a 75% expected appreciation in the stock vs the monday opening share price.
With POT consistently rocking the 50 day moving average one has to consider purchasing POT shares or options at the current price and one should certainly jump into the stock on any upcoming weakness. During its run up there have been a number of profit taking days, which are great purchasing opportunities.
Analyst upgrades have only helped to full the Potash rally. Currently three have the stock as a strong buy, seven as a buy and four have POT rated as a hold. This is great news for current Potash Agri owners, as one has to expect the four current hold ratings to be upgraded to a minimum of buy.
For the week of March 24th to March 28th 2008 the Potash Corp agricultural stock rose 7.4% to close at $160.50, although they remained relatively flat since the opening of the tuesday session. This was due primarily to the 3pm sell off on friday afternoon. The stocks are also hitting a resistance level right around there all time high. If the shares are able to break through this level early in the week of March 31st to April 4th it should be poised to move up into the $170's price range.
