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Mosaic and the Fertilizers are In Play

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Stock quotes in this article: MOS, AGU, MON, POT

TheStreet.com has a buy rating on The Mosaic Company (MOS). I think that the fertilizer chemicals sector has turned positive, MOS being of that sector's best stocks.

Technically, MOS is forming into my coiling pattern. Should the one year time-frame of the slow stochastic as well as RSI continue to improve their upward momentum MOS could break out into the mid-to-high $60's.

MOS has cash on hand net of all debt over $5/share. Any company in that fundamental position is one that is well-managed and able to adjust to changing market conditions, both good and bad. The conditions for MOS since the fall of 2011 have not been too favorable. But, things do change, sometimes for the better.

The fertilizer sector has had its share of recent problems to overcome, one being a supply imbalance relative to demand. However that market bias seems to be overstated, if not in a big way. This improving situation for MOS was not missed by certain investors.

Trade: Buy to open 3 MOS September 62.50 calls for $2.40 and Sell to open 3 MOS September 67.50 calls at $1.00.

The total risk associated with the trade is 1.40 points per spread.

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