Can We Expect A Turnaround In Potash Corp./Saskatchewan (USA) (NYSE:POT)’s Earning?


Dallas, Texas 12/11/2013 (FINANCIALSTRENDS) – The time seems to be not going well for the Potash Corp./Saskatchewan (USA) (NYSE:POT) as the company recently lay off about 1045 employees. The preliminary reports suggest that it has to pay an estimated $70 million as severance expenses for the 4th quarter of 2013. All these expenses can wipe out 6 cents per share in value. Till now we have mostly seen a rally in all those stocks that have done employee layoffs or other cost cutting measures such as asset closing exercises.

But now the pessimism seems to be settling over the stock if all these things happen and the same thing is getting happened with Potash Corp. The initial rally on the Potash Corp. stock on Tuesday was followed by a strong dip on Wednesday and many industry analysts are now pointing that the Thursday and Friday can also witness a downward trend in terms of the price movement with this stock.

Future of this stock

There are many professionals and industry insiders which are pointing to the fact that if the Potash Corp./Saskatchewan (USA) (NYSE:POT) misses its 4th quarter results which are to be released in January then we can expect an underperformance and that will last till the month of April. This is important because in the month of April the fertilizer application will begin and the quarter 1 earnings for the 2014 will be released. All this news has led to speculation that this stock might underperform in the coming times but can prove to be a good and excellent bet if hold for a long term.

The international demand for the fertilizer is also going to gain momentum in the coming years and we can expect a great amount of consolidation in the stock value but also expect handsome returns in another 2 or 3 years.