GREEN SHOOTS? (IMAGE SOURCE: POTASHCORP INVESTOR PRESENTATION)
PotashCorp (POT) has had a rough year.
In January, for the first time since its 1989 IPO, the company cut its dividend, slashing the payout by roughly 34% to $0.25 a share. Soon after, it issued weak guidance estimates, with volumes looking to fall to just 8.3 million to 9.1 million tons this year. Today, potash prices continue to slump, recently hitting 8-year lows. PotashCorp has seen its own sale and profit declines, aided by a weakening of the U.S. and Asia markets, as producers continue to fight for market share rather than earnings.
Bulls believe the slide should end soon based on factors like growing demand in India and a rationalized global supply. Is PotashCorp primed for a turnaround?
POT Total Return Price data by YCharts
