Even though I like PotashCorp (NYSE: POT ) , there are a few areas of risk I am keeping my eye on that could hold the company back. Between high crop prices and low natural gas prices, mean reversion could impact sales and margins in a bad way. PotashCorp might not be affected nearly as badly as its nearest peers, Agrium (NYSE: AGU ) and Mosaic (NYSE: MOS ) , due to their higher potash cost structure, but peer comparisons aren't the only thing that matters to Mr. Market. Check out the video below where I detail a few things to keep a watchful eye on.
This company is well worth a deeper dive
With less and less arable land available around the world, increasing yields from existing plots will become vitally important to keep up with expected population growth. Cheap and effective fertilizers could be the key to achieving this goal. As the global leader in potash production, PotashCorp has several barriers to entry established that make it nearly impossible for competition to break through. Click here now to access The Motley Fool's new premium research report on PotashCorp, in which we cover precisely what these barriers to entry are, and detail several other key reasons why this company presents such a compelling investment opportunity today.