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Two Ways: Potash Loses Its Green Thumb


Strengthen your portfolio in good times and bad.

POT Selling off

Shares of Potash Corp. (POT) are trading sharply lower this morning. The world's largest maker of potash fertilizer cut its second quarter guidance to $0.70 a share, below Wall Street consensus of $0.93 a share. Its initial EPS target was in the range of $1.10 to $1.50 a share.

The company said in a press release that the change is due to deferral of purchases by customers around the world as well as lower realized prices for phosphate fertilizers. Shares are down approximately 9% to $85.00 in the premarket.

From the Bull Pen: Professor Krueger has spoken of the supply-side issues of the agriculture sector. It's only a matter of time before the Ferts regain their momentum. Bulls viewing this as a buying opportunity can fade (read: buy) POT into $80 support. A sell stop can be set below that level.

From the Bear Cave: For an ag-related downside play, keep an eye on Archer Daniels Midland (ADM). Watch for failure near $28. A buy stop can be set above $29 on downside attempts.

Quick Check Around the World

Asian trading closed with the Hang Seng 1.78%, India 2.92%, Shanghai 0.11%, Nikkei 0.83%, and Taiwan 0.09%.

Glancing towards Europe, we see the FTSE 0.05%, CAC -0.30%, DAX 0.26%

As of 8:10 AM EST, S&P Futures are trading -2.6 to 920.26 and Nasdaq futures are -4 to 1468.50.

A Look at Commodities

Over in commodities, crude oil is trading +0.19 to 70.42 while gold is +7.30 at 946.80 this morning. Silver is +0.270 to 14.28 and copper +1.85 to 232.00.

The dollar index is -0.620 to 80.0700.

On the Radar


08:30 Personal Income 0.2% cons
08:30 Personal Spending 0.4% cons
08:30 PCE Core 0.2% cons
09:55 Michigan Sentiment Revised 69.0 cons

Happy Pinkberry Friday! Good luck and have a great weekend!
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No positions in stocks mentioned.

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