Tuesday, March 8, 2016

What Mosaic Offers Investors in 2016

Looking at The Mosaic Company's (NYSE:MOS) recent fourth-quarter earnings presentation, it's clear that management is encouraging investors to look beyond the near-term pressures and consider the long-term case for the company. Investing in the fertilizer sector offers a classic example of the conundrums presented by highly cyclical stocks. Value trap or long-term buy? Try to pick the bottom, or just buy and wait for value to out itself? And does your target have a long-term structural problem, or is it merely in a temporary and cyclical decline?

MOS Chart
As you can see from the chart above, it's been a tough five years for both Mosaic and its key rival, Potash Corporation of Saskatchewan (NYSE:POT).

READ THE FULL EQUITY RESEARCH ARTICLE LINKED