This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Potash Lifts Outlook, Pressuring BHP

(Potash story updated with the latest details on BHP Billiton's attempts to win regulatory approval of its bid from the Canadian government.)

SASKATOON, Saskatchewan ( TheStreet) -- Potash (POT - Get Report) gave itself some ammunition Thursday in its struggle either to scamper away from takeover pursuer BHP Billiton (BHP) or force the mining giant to pay up.

Potash reported third-quarter earnings that exceeded Wall Street expectations, but the company's managers also made a boldly optimistic prediction about Potash's profit next year -- an increase in guidance that the company undoubtedly hopes will force investors to revalue the stock higher.

>>Potash vs BHP: The Fertilizer War From A to Z

In early trading Thursday, at least, that wasn't the case. Potash shares were falling 4% to $143.31 on heavy volume.

The downward move likely had to do with increasing concern that the Canadian federal government has grown more circumspect about approving BHP's bid for Potash.

A report in the Globe & Mail newspaper Thursday morning points out that Ottawa officials appear to be swayed more and more by arguments against foreign ownership of crucial natural resources -- this despite Canada's recent history of letting big overseas concerns buy out independent Canadian miners. (See: Vale's (VALE) acquisition of Inco, 2006.)

Uncertainty surrounding the politics of the takeover has investors nervous that Ottawa might scuttle any deal, no matter the price that BHP offers.

Ottawa's Investment Canada, the federal agency with jurisdiction over the takeover bid, is scheduled to release its decision next Wednesday, Nov. 3.

BHP Billiton had been drawing criticism for making its bid for Potash too late. That's because a serious run-up in crop prices this summer and fall has made farmers flush and eager to load up on fertilizers. The crop rally has lifted the stocks of agriculture companies across the board, including Potash's, with the effect of making BHP's $130-a-share offer look naïve by comparison.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BHP $31.34 0.00%
POT $17.72 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs