A sputtering economy, implosions at financial institutions, or just plain bad management -- on any given day, investors can name a number of reasons to sell a stock. Yet while panic never benefits investors, it's still good practice to play devil's advocate with investments from time to time.
In Motley Fool CAPS, more than 130,000 members have weighed in on more than 5,300 stocks, sharing bullish and bearish opinions alike.
In the case of fertilizer producer PotashCorp
2. Potash price pressure
Potential longer-term lower potash prices prompted Soleil Securities to downgrade PotashCorp. The company had been holding the line on prices, but a recent 25% price reduction between Belarusian Potash and Brazilian buyers could have a negative effect on PotashCorp's future bargaining power, making it tougher to keep margins steady on its prime mineral.
3. Weak farmer sentiment
The U.S. Department of Agriculture predicts farm income to decline 9% this year as farmers look to plant cheaper crops like soybeans, which require less fertilizer and farming equipment, to help offset the hit from lower commodity prices. This could affect the top lines across the board of companies involved in agriculture, including Monsanto
Of course, Potash has survived and thrived despite dozens of obstacles in the past. Will the company continue its success? When weighing questions such as this, CAPS makes a great resource to augment your own analysis.
Further fickle Foolishness:
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Fool contributor Dave Mock still doesn't get the appeal of Clamato. He owns no shares of companies mentioned here. The Fool owns shares of Terex. The Fool's disclosure policy is stretching its budget more lately by recycling itself.