POTASH CORP. OF SASKATCHEWAN $23 (Toronto symbol POT; Aggressive Growth Portfolio, Resources sector; Shares outstanding: 839.2 million; Market cap: $19.3 billion; Price-to-sales ratio: 3.7; Dividend yield: 5.5%; TSINetwork Rating: Average; www.potashcorp.com) is down 4% since the start of 2016. That’s partly because China —the world’s largest user of potash fertilizers—has not yet signed a new deal with potash producers. This contract helps set the price for other deals.
China paid $350 U.S. a tonne for potash in 2015, but prices could decline to $200 U.S. That’s because rising domestic production and imports from Russia have expanded inventories in China. However, potash prices could firm up when producers negotiate a new deal with India in the next few weeks.
Potash Corp. is still a hold.