The Successful Investor Hotline – Friday, June 26, 2009

Article Excerpt

POTASH CORP. OF SASKATCHEWAN, $107.66, Toronto symbol POT, fell slightly on Friday after it lowered its second-quarter earnings forecast. Potash now expects to report earnings of $0.70 a share (all amounts except share price in U.S. dollars). That’s 46.2% below the midpoint of its earlier range of $1.10 to $1.50. Lower prices for crops, such as corn and wheat, continue to dampen fertilizer demand and prices. Plus, sales have been hurt by unusually dry conditions in the Canadian prairies and cool, wet weather in the U.S. Potash Corp. and other fertilizer makers, such as Agrium (see below), have cut their production in an effort to lower global inventories and push up prices. However, it will probably take several months before demand starts rising again. Potash Corp. is a hold. AGRIUM INC., $46.80, Toronto symbol AGU, fell 2% on Friday in response to Potash’s earnings warning. In May, Agrium predicted that it would earn between $2.00 a share and $2.40 in the second quarter,…