Potash Corp of Saskatchewan (POT) is a fertilizer giant that mines, produces and sells industrial and feed products worldwide. The company operates in three segments: Potash, Nitrogen, and Phosphate. Potash is a mined commodity and Potash Corp of Saskatchewan is well suited geographically to take advantage of the large reserves in Canada – which account for nearly 1/2 of the world’s reserves. The fall in commodity prices has taken a toll on PotashCorp’s stock price and yield hungry investors (currently yielding ~7%) have been backing up the truck. However, investors should remain diligent and not reach for yield as PotashCorp’s earnings are expected to stagnate – and the company looks towards M&A to grow its earnings.
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