Wednesday, January 23, 2008

Wait & See

The recent market volatility suggests more of a wait and see approach. Timing the market is difficult and near impossible. I would like to see how the market trades the next couple of days before going long or short.

Wednesday, January 09, 2008

Agriculture Continues to Deliver

The Mosaic Company (MOS) reported a terrific quarter today. Besides handily beating analyst earnings estimates, Mosaic prepaid $450M of debt with cash flow from operations. Mosaic has seen quarter over quarter price increases in its fertilizer products.

Last week, Monsanto (MON) reported a tripling of net income in its most recent quarter. Again further demonstrating the strength of the Agriculture cycle right now. Clearly a lot of the good news has been priced in to these stocks. Mosaic shares finished up .72% on the day. Taking some profits in the fertilizer and seed stocks would seem prudent.

Note: I am long MOS and have no position in MON