The Successful Investor Hotline – Friday, September 17, 2010

Article Excerpt

POTASH CORP. OF SASKATCHEWAN, $151.59, Toronto symbol POT, continues to trade above the $130.00 U.S.-a-share hostile takeover offer from BHP Billiton Ltd. (New York symbol BHP). That’s partly due to rumours that Potash Corp.’s management is planning to buy a majority interest in the company using borrowed funds. Some of these funds would probably come from several Chinese firms, as well as some sovereign wealth funds from China and other countries. (Sovereign wealth funds are state-owned investment funds that are usually financed by an economic surplus.) However, sovereign wealth funds would only hold a minority stake in Potash Corp. That would help the buyers win regulatory approval for a takeover. Potash Corp. is still a hold. CANADIAN TIRE CORP., $56.90, Toronto symbol CTC.A, has a new plan to boost sales at its 482 stores. The plan mainly involves improving customer service, including lowering the amount of time customers must wait for assistance. The company is also merging its support functions, such as accounting…