Potash: 2013 The Year Of Demand Recovery

The recent figures by Potash Corporation of Saskatchewan (POT) may have come as a surprise to analysts but we have been saying it all along that we expect demand to rebound in 2013, particularly once contracts with India and China are settled. The fundamentals for the industry remain strong. We have a bullish rating on POT for long-term investors.

Potash is trading at a forward P/E of 11. It has a dividend yield of 2.2 percent compared to Mosaic's dividend yield of 2 percent. Both POT and MOS are down YTD, POT by 14 percent and MOS by 6.6 percent. The earnings growth rate for MOS is 8 percent compared to 2.6 percent for POT. Read more