POTASH CORP. OF SASKATCHEWAN $41 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 859.1 million; Market cap: $35.2 billion; Price-to-sales ratio: 4.2; Dividend yield: 1.3%; TSINetwork Rating: Average; www.potashcorp.com) expects global potash demand to rise to between 56 million tonnes and 60 million tonnes in 2013 from 53 million tonnes in 2012.
The recent drought in the U.S. has pushed up prices for wheat, corn and other crops. That’s prompting farmers to apply more fertilizer to increase their crop yields.
However, potash inventories have risen lately as big buyers like China and India negotiate new supply contracts. In response, the company will shut down its main potash mine in Saskatchewan for one month.
Potash Corp. is a buy.