Mosaic - We still have to eat!
I know the market is imploding but there is a point where a bottom is going to form over the bleeding bodies of the bulls. The commodity markets are still getting hammered but I do believe there is going to be a light at the end of the tunnel.
The companies who will be least impacted by the current global financial crisis are the fertilizer companies like Mosaic and Potash. They are seeing orders drop only slightly because people have to eat. With 6.5 billion people on the planet and heading towards 7.0 billion around 2012 there is a very strong need for fertilizer to produce food not just in the U.S. but all over the world.
I think the bleeding is nearly over on Mosaic and it is trying to find support in the $35-$37 range. That is a long way from its $160 high back in June.
I am going to add MOS as a long play in the LEAPS newsletter this weekend. If it rebounds over $40 I would use that as a signal to get long the 2010 $50 LEAP LXW-AJ