Fertilizer companies have been despised for quite some time now. Potash ($POT), however, has likely put in its bottom for the year. With investors searching for yield, $POT will surely experience buying interest as it boasts over a 3% dividend and is demonstrating strong technical strength.
Potash ($POT)is above all of its moving averages and off more than 40% from its highs. When the street hates a basket of stocks that have good fundamentals, (agriculture at the moment) you buy the best name in the group and wait for the turnaround.
I am watching this one closely and will update you if I buy. Although, if you are feeling frisky (I’m worried about the overall market), then the pullback here for $POT to the 20 day moving average (yellow line) presents an attractive entry point.
Update: Potash ($POT) Continues Uptrend