Will The Mosaic Company (NYSE:MOS) Be Affected By Fertilizer Rules


Dallas, Texas 01/08/2014 (FINANCIALSTRENDS) – 

The Mosaic Company (NYSE:MOS) and other fertilizer companies and agri-chemical product manufacturers in the country are since believed to be on the receiving end, after President Obama’s tough speak on chemical use in agriculture sector. Of the many incidents of the polluting and the side-effects some of the chemicals have on agri-produce, stringent laws and high-fines are defining much of the sectors moves.

The point of reference for many of the rules appears to the blasts in rural Texas through the use of explosives. It has to be noted that, much of the farming, oil drilling industry as well as the fertilizer industry manufacturing units, engage in the use of chemicals. The rules could well change the manner in which chemicals shall be used by fertilizer plants.

Buys Cargill trusts for $2billion

The Mosaic Company (NYSE:MOS) on the other hand, has moved forward on its financial outlay, with buying over $2 billion shares in Cargill trusts. Though the investment will be in Class A shares which the Cargill-owning family holds, through charities and trusts, it will help in resolving some of the issues associated with 64% stake the company held with MOS in 2011. The repurchase, though effective on the balance sheet, has not been a winner with investors.

The Mosaic Company (NYSE:MOS) is a US-based Agricultural company which deals with Basic materials sector-  agricultural chemicals – and produces some of the highest quality potash, phosphate and other related agricultural nutrients for global consumers. It is a $19.7 billion market cap company and trades at 2,489,721 volumes with yield of 2.20 and dividend rate of 1.00, besides EPS of 0.29. The company also has 52-week trading high of 64.65 and 52-week low of $39.75, with EPS poised at 0.29. The stock prices of the company currently trade at $46.35 and have since shown a slide of 0.49%.