Friday, November 5, 2010

Thanks to Brad Wall and Dick Haskayne the small investor has won in Potash

In early September I wrote about the unfairness of the Potash tackover bid. I also pointed out that unless the government intervened, the small investor would get crushed between BHP and Potash management. The Western provinces and several business leaders such as Dick Haskayne took a stand; the Harper government decided for political or for more sincere reasons that the Potash take-over was not in Canada's best interest.

I am happy with the outcome. I was also lucky enough to sell my Potash shares around $150 and made a tidy profit over the $114 purchase price. So now, it is a matter of waiting for POT to settle to a price level where it is fairly valued in today's economy. Since not a lot fertilizer will be sold over the winter, we should have until spring 2011 to wait for the right price.

Don't  wait for POT to fall back to $90 per share, however, a purchase price of $112 -120 should be achieveable. Keep an eye on upcoming quarterly reports and the price of potash. Chances are POT will make an attractive long term investment.  Now that would change your perception of reality (pun on POT)!

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