Shareholders at POT are idiots... This is a good short now, will keep it on the radar.
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Potash Corp. rejects $130-share bid from BHP
- Thread starter ttowntrader
- Start date
POT has an incredibly sound business model. The opportunity for growth in the future is immense. The world population is skyrocketing and people need to eat. In the medium term, POT should benefit from low wheat production.
I cannot think of any reason POT shareholders would want to be bought out.
I cannot think of any reason POT shareholders would want to be bought out.
Quote from Kassz007:
POT has an incredibly sound business model. The opportunity for growth in the future is immense. The world population is skyrocketing and people need to eat. In the medium term, POT should benefit from low wheat production.
I cannot think of any reason POT shareholders would want to be bought out.
32x for the company? Please. You can build for less. It's a commodity, period.
http://www.montrealgazette.com/Potash+board+rejects+takeover+proposal/3407779/story.htmlThe company has also adopted a shareholder rights plan, giving the board the right to issue a purchase right at a substantial discount for a common share of Potash Corp. if any one person or company acquires 20% or more of the company's stock.
Massive dilution, so any deal will need to be friendly. The board is probably holding out for 165-70 per share. Shorting the 150 Sep or Oct straddle this morning.
Quote from Daal:
Its 17x next year earnings. It looks like they agree with the estimates and the growth rate going forward
Wow, you know what they're going to earn in 2011, Kreskin? You're amazing! Next time adjust the forward PE for a price of 145. These are not oil reserves they're buying.