The Successful Investor Hotline – Friday, October 1, 2010

Article Excerpt

POTASH CORP. OF SASKATCHEWAN, $145.00, Toronto symbol POT, has moved down from its recent peak of $160.65. That’s mostly because the Canadian government appears more likely to block or impose conditions on BHP Billiton Ltd.’s (New York symbol BHP) $130.00 U.S.-a-share takeover of Potash Corp. As well, Potash Corp. has launched a lawsuit to stop the takeover. The suit accuses BHP of making misleading statements about the potash industry to depress Potash Corp.’s share price prior to making its offer. Potash Corp. is still a hold. AGRIUM INC., $76.50, Toronto symbol AGU, has gained 11% since BHP launched its offer for Potash Corp. (see above) on August 17, 2010. That’s because the takeover attempt has helped draw investor attention to other fertilizer companies. Like Potash Corp., Agrium should continue to see strong demand for its fertilizers. That’s because rising incomes in developing countries are fuelling demand for more and better food. Moreover, no single shareholder holds a majority interest in Agrium. That would…