Potash Corp. of Saskatchewan – Finally at a price point that makes sense!
June 6, 2012
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There are a lot of stocks on our wish list but the price always seems too high. As we have stated in our market piece on the S&P/TSX 60 we are at an interesting risk/reward juncture in the Canadian market. Looking for buy candidates within the index can be a challenge depending on your point of view of the market place. However scanning the horizon Potash Corp. (POT) does look interesting.
Model Price Chart on Potash Corp. (POT-US)
Potash Corp – US with weekly price bars, EBV Lines (colored lines) and model price (dashed line)
For those interested, a daily updated chart of POT subsequent to this post will be maintained on Facebook, here.
Long Term Model Price Chart on Potash Corp. (POT-US)
Potash Corp. -US with monthly price bars, EBV Lines (colored lines) and model price (dashed line)
Potash Corp. has bounced off EBV+5 three times since 2008. Last time POT hit EBV+5 was late 2010, and then traded up to EBV+7. Well here we are again!
The purpose of this blog is NOT recommending stocks, and I’m not recommending POT to anybody. However, I do like being a “birddog” if you will and I do like pointing things out. Potash Corp. is worth pointing out.