The junior bourse broke through the 2002 lows but the big board managed a late day rally to finish in the black during Thursday trading on the Canadian markets.
The boom in commodities in the first half of the year sent demand for potash soaring.
This pushed up the price of Canada’s Potash Corp (NYSE:POT). It hit a peak of $240 in July. Since then, the share price has collapsed by almost two-thirds. It is now trading below $100.
These kinds of corrections are creating great bargain in the stock market today. But Andrew Snyder says Potash Corp’s liquidity problems could see it tumble even further in the short term.
The onslaught of selling resumed with a vengeance during Thursday trading on the Canadian Markets. For the tale of the tape, the TSX Exchange lost 6.95%, while the TSX Gold Index plunged 14.8% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 6.73% with the declining issuers swamping the advancers by a 698 to 216 margin on volume of 154 million shares traded.
Money Map Report editor Horacio Marquez says it’s now time to buy back into Potash Corp. (NYSE:POT). He advised investors to sell the stock at the start of August before it plunged 20%.
Horacio says the US government’s bailout strategy is reducing systematic risk in financial markets and clearing the way for fundamentals to determine trading patterns. For potash, that means soaring demand in emerging markets such as China and India.
Horacio says investors should start buying Potash Corp at today’s bargain price.
It was a joyful day on the Canadian Markets during Friday trading as investors finally showed a little appetite for risk by actually buying some of the more speculative equities.
The Canada market melt down continued during Friday’s session but some late day buying helped propel the big board into the black as the junior board continued to struggle.
As the old Wall Street adage says, nobody ever got poor by taking profits. And Potash Corp. (NYSE: POT), the world’s largest fertilizer company, is a living case study as to why that’s true.
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The selling of commodity related stocks continued on the Canadian markets during Thursday trading.
According to AP, potash producers will continue on their impressive uptrend because demand for fertilizers still exceeds supply.
But Andrew Mickey says the soaring price of natural gas will hit fertilizer manufacturing profits hard — and hurt potash stocks in the process.
In the last twelve months, two leading potash producers, The Mosaic Company (NYSE: MOS) and Potash Corp (NYSE: POT) have seen share prices rise 260% and 176% respectively.