Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, fertilizer giant Mosaic
With that in mind, let's take a closer look at Mosaic's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Plymouth, Minn. (2004)|
|Market Cap||$34 billion|
|Industry||Fertilizers and agricultural chemicals|
|Trailing-12-Month Revenue||$7.49 billion|
CEO James Prokopanko (since 2007)
CFO Lawrence Stranghoener (since 2004)
|Return on Equity (Average, Past 3 Years)||26.8%|
|Cash/Debt||$2.36 billion / $1.33 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 2,527 members who have rated Mosaic believe the stock will outperform the S&P 500 going forward. These bulls include Nostrademous and All-Star TMFDeej, who is ranked in the top 1% of our community.
Late last year, Nostrademous tapped Mosaic as a solid selection for the new year: "Agriculture will be huge for 2011. Should be considered as a safe and strong option in any portfolio."
As the world's largest producer of phosphate fertilizers, Mosaic remains a highly rated CAPS play on the ever-growing global demand for food. Currently, Mosaic even trades at a P/E (17.5) discount to rivals Agrium (24.9), CF Industries (41.2), and PotashCorp (31.5), as well as other ag-sensitive stocks like Dow Chemical
CAPS All-Star TMFDeej elaborates on the bull case:
I am nearly 100% certain that the price of corn is headed higher in 2011. The question is, outside of purchasing corn contracts how can one play this trend?
One way is to purchase stock in Mosaic. According to Forbes, Mosaic's stock is 89% correlated with the price of corn. ...
Add to this the fact that China, which accounts for 20% of global phosphate sales, might begin to restrict exports and the fertilizer may end up being in short supply.
Mosaic's production capacity is scheduled to increase by 60% between now and 2020 so it will be in a position to provide ample supply to an otherwise tight market.
What do you think about Mosaic, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool Options has recommended a synthetic long position on Monsanto. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.