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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB
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Potash Corp of Saskatchewan - POT
#22284395 - 09/24/15 03:06 PM (8 years, 4 months ago) |
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After a string of bad news this week dividend play is trading at multi-year lows. It is currently yielding 7.2% and has a PE of 11.6. It is one of Canada's 20 largest corporations by market cap and is one of the lowest cost producers of potash in the world. After a multi-year capacity expansion program and with 25% of the world's potash processing capacity it will easily be able to weather this temporary downturn and this should be regarded as a buying opportunity for the value investor.
Its payout ratio is creeping up to the high side 76%, but it can still easily pay out dividends from free cash and its major expansion phase is nearly complete. This is a company you can hold on to for many many decades as fertilizer and potash is an extremely consolidated market and it essential for agricultural food production. POT trades on both the TSX in CDN$ and on the NYSE in USD$, but its dividends are paid in USD for both listings.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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iateshaggy
i haxor 360s



Registered: 05/20/05
Posts: 4,707
Loc: 612 Warf Avenue, next to....
Last seen: 1 month, 10 days
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lol, i used to work there. i wonder if someone here knows what this greenish crystal is i got from there.
-------------------- You are a filipina sex goddess who wants to fuck me until I fall asleep, so then you can tickle my balls and see if the legend of my diamond filled nutsuck is true. I am a white man from costa rica, who smells like lime jello.
I can flash/jtag/repair 360's, pm for details.
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Confucian
...


Registered: 03/31/09
Posts: 1,741
Loc: USA
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Re: Potash Corp of Saskatchewan - POT [Re: iateshaggy]
#22286065 - 09/24/15 08:59 PM (8 years, 4 months ago) |
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Good luck on falling in love and marrying stocks for life based on ¨fundamentals¨.
I´m no expert but there has to be a very good and logical reason why a stock paying a 7% dividend, making $1.81 earnings per share, with a net profit margin last quarter of 24%, has plummeted from $60 four years ago down to $37 this past February and down to $20 today.
Very profitable, great dividend, and solid earnings yet continues to crash? Common sense says there is something in the mid to long term that is extremely terrible about the business they are involved in. There is no other explanation.
Edited by Confucian (09/24/15 09:00 PM)
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Ahab McBathsalts
OTD Windmill Administrator




Registered: 11/25/02
Posts: 35,109
Loc: Wind Turbine, AB
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Re: Potash Corp of Saskatchewan - POT [Re: Confucian]
#22287279 - 09/25/15 06:51 AM (8 years, 4 months ago) |
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Mr. Market was never very good at having common sense. A bit of bad news out of China, but they still need potash to eat. Rarely will people cut out food as a first choice in economic or stockmarket downturn. Cars? Vacations? Durable goods? But rarely food.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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