InvestorsHub Logo

MWM

Followers 1062
Posts 141571
Boards Moderated 14
Alias Born 03/31/2006

MWM

Re: None

Wednesday, 09/11/2013 3:41:18 PM

Wednesday, September 11, 2013 3:41:18 PM

Post# of 308
MOS a little write up from Forbes...

And we could add one of our most recent picks to that list of laggards as Mosaic MOS -1.43%, the world’s largest integrated producer of phosphate, and the third largest global producer of pot­ash, just became inexpensive enough to justify a purchase. Mosaic endured plenty of downside volatility, plunging by more than 20% in July following an an­nouncement by the CEO of a major Russian potash pro­ducer that his company was leaving a decades-old potash cartel and would pursue a volume-based strategy that could damage global potash pricing power industry wide.

While this near-term headwind could be difficult to overcome, we note that these types of spats in cartels often don’t result in anar­chy, but instead lead to new agreements that evolve over time. Additionally, we like that Mosaic has a fortress bal­ance sheet that includes $6.25 per share of net cash, and that the firm generates strong free cash flow, giving man­agement operational flexibility to return capital to share­holders via share repurchases and/or dividend increases. We believe that while the operating environment will be challenging over the coming quarters, the firm stands to benefit long-term from the positive global macro agricul­ture trends. With a very inexpensive valuation after the plunge in the share price and a dividend yield of 2.4%, we welcomed old friend MOS back into Buckingham Portfolio in August.




Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent MOS News