Posted by: usset001 | October 3, 2008

Mosaic stock price and a serious retracement (part 2)

A few weeks ago I posted some comments on the stock price of Mosaic, a large fertilizer manufacturer and distributor, and noted how closely the stock price has tracked the price of corn over the past year. Yesterday, Mosaic released it’s 1st quarter results and to say that the market was disappointed would be an understatement. The stock price traded $27 lower today ,from $67 to a close of under $40 – the market value of the company dropped 40% in one day. This is the same stock that traded over $160 per share in mid-June.

This is harsh treatment for a stock and a company that, on the face of it, had a very good quarter. Net sales more than doubled and operating income tripled compared to the same quarter a year ago – great numbers, but apparently not up to expectations.

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