Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Could Mosaic See Growth After Weak First Quarter?

By

Long term has potential, but no catalysts in near term.

PrintPRINT
For the second time over the last few weeks I looked up after the close the other day and heard someone on my floor yelling,"We're barring the trade!" I'm thinking, what are they talking about? Which stock? What happened? Apparently they were talking fantasy football and arguing over a player trade. It almost elevated to fisticuffs. True story.

Asian stocks rose overnight. The Hang Seng was up a hefty 1.87% and the Nikkei rose 0.18%. European stocks were in positive territory as well early this morning. And here in the US, we're currently trading higher.

Here's what I'm seeing this morning:

Mosaic (MOS):
The one-time high-flying fertilizer company was out with its first-quarter numbers.

It put up $0.23 a share, which wasn't so swift because the estimate I'm seeing was for a gain of $0.35. Meanwhile, its revenues came in at $1.46 billion. The Street had been looking for $1.54 billion.

My two cents:

1. I wasn't too excited about the quarter and I think this year's estimate could come down a smidge. However, I do believe this company has the potential to experience some decent growth in the next several years and I don't think between 14 and 15 times this year's current estimate is too much to cough up.

2. That said, I personally wouldn't hop aboard unless I truly had that longer-term investment horizon, because near-term, I don't see any huge catalysts.

3. With the shares well off their all-time highs, I'd like to see insiders belly up in the open market. It would make existing shareholders feel a wee bit better.

Caterpillar
(CAT):
Price check on the bulldozer in aisle four!

There was some news out that the Illinois-based heavy-duty-machinery maker plans to raise its prices a bit.

In any case, I'm using this news as an excuse to weigh in on the overall situation.

1. I've been wrong on this company. In spite of my hand wringing and concern that a sluggish economy would keep the stock down, it's actually had a fair amount of wind at its back. To boot, it's trading somewhat near its 52-week high.

2. I'm iffy about the idea of jumping in full-force at these levels. But if it hits a new high, I could see it motoring above $60. Interestingly, data shows that estimates for this year and next were up over the past 30 days, which is nice to see, too.
< Previous
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE