While it's a puzzling concept for those of us reared on McDonald's
This is where Potash Corp
Pricing was strong across Potash's three fertilizer groups, lifting gross margin by 93%. Currency fluctuations (if you can call the dollar's unabated downward march a fluctuation) and an abnormally high tax rate prevented all of the gross-margin goodies from dropping to the bottom line. Still, a 67% rise in profit isn't half bad.
The company described the market for its namesake product as "exceptionally tight," and recent news of a mine flood in Russia has the potential to be the biggest market dislocation since Cameco's
If indeed we see a major disruption, I imagine there will be something of a fertilizer stock eruption. That's unfortunate for investors, rather than traders, because the valuation is likely to get out of whack in the process. The long-term picture here is excellent, and I hope those of us just encountering this story will get a better entry point somewhere down the line.