Back in June Mosaic actually traded at $160. Looking at the chart you can see that it has come a long way off since then with a close just above $68 yesterday.
Anybody who checks out the strong balance sheet, the sales, and the juicy profit margins must be scratching their head wondering why the share price keeps sliding. There are lots of brokers out there as well rating it as a buy but the share price keeps heading south.
Why does the share price keep heading south?
I think the reason why the price is sliding is because the market has been factoring in a major economic slowdown and future weakness in sales and profits were getting factored in.
Phosphate prices are still holding their ground however so the fundamental strength remains.
The negative sentiment and scenario could change quickly now that the big bailout package, that got knocked back by Congress on Monday, is now coming back for a second shot. Only this time there will be tax cuts as well as other goodies added in.
A name change to 'rescue package' might also help change sentiment but I guess that huge 778 point fall in the Dow is what really got a few people thinking a little harder.
So the chance of a yes vote tomorrow evening US time. Then there are company numbers to be released at 4pm and they are expected to be solid. Don't forget that little candle on the above chart as well.
At the very least the chance of a short term bounce upward is strong. Fundamentally the company is very strong so if the bailout....ooops........... I mean 'rescue package,' gets traction and actually starts to work, then consider holding this stock for the long term.