POTash
I was asked this weekend to look into POT, Potash Corporation. I ran my analysis incredibly conservatively and simply assumed that the entire last year's incomes were unjustified. Based on incomes last year, the company is priced to grow at 14.8%. Over the last 9 years (excluding the last year), you've got a growth rate of about 18%, most of which is in the latter part. I think this was a cyclical boom. I think the company is still overpriced. Using my lazy calculations, $40 is where I'd become a buyer. But, maybe there is something to this last year of absolutely ridiculously overpriced everything. I'm waiting till the 4Q's come out before I guide any higher.
Enjoyed this? Get more like it.
Glen's Musings — AI, investing, and building things. Occasional. Free.
Glen Bradford
Investor · Builder · Writer
MBA from Purdue. Former hedge fund manager. Holds 26 series of Fannie Mae and Freddie Mac junior preferred stock. Built Cloud Nimbus for Salesforce consulting. Author of Act As If. Writes about investing, building things, and the longest financial fraud in American history.
More in Life & Philosophy
Keep Exploring
Act As If — Glen's Book
Talk minus action equals zero. The philosophy that drives everything.
Read moreLessons from Losing
What losing a million dollars (multiple times) actually teaches you.
Read moreGlen's Rules
The principles behind the investing, the building, and the writing.
Read more157 Billionaire Profiles
What the world's most successful people got right.
Read moreDisclaimer: This blog post reflects the author's personal opinions at the time of writing and is not financial, investment, or legal advice. Glen Bradford holds positions in securities discussed on this site. Past performance is not indicative of future results. Do your own research and consult qualified professionals before making investment decisions. Some content on this site was generated or edited with AI assistance.