Mosaic Co (MOS): Today's Featured Basic Materials Winner

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Mosaic ( MOS) pushed the Basic Materials sector higher today making it today's featured basic materials winner. The sector as a whole was unchanged today. By the end of trading, Mosaic rose $1.22 (2.8%) to $45.53 on heavy volume. Throughout the day, 13,564,116 shares of Mosaic exchanged hands as compared to its average daily volume of 6,612,200 shares. The stock ranged in a price between $44.17-$46.27 after having opened the day at $44.65 as compared to the previous trading day's close of $44.31. Other companies within the Basic Materials sector that increased today were: KiOR ( KIOR), up 24.7%, Prospect Global Resources ( PGRX), up 23.7%, Ceres ( CERE), up 17.4% and Triangle Petroleum ( TPLM), up 17.1%.

October 5 FQ1-2011 Results: - FQ1-11 Guidance: Potash 1.6-1.9Mt @ $310-$340 tonne. Phosphate 3.3-3.6Mt @ $430-460/tonne. - Sustaining capex of $450-500M/yr FY2011 capex $1.4-1.6bn to grow potash (excludes $350m Bayovar payment). Mosaic has a market cap of $12.5 billion and is part of the chemicals industry. Shares are down 25.6% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Mosaic a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Mosaic as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.

On the negative front, USEC ( USU), down 15.6%, Timberline Resources Corporation ( TLR), down 12.3%, Sonde Resources ( SOQ), down 9.6% and Quaterra Resources ( QMM), down 9.0% , were all laggards within the basic materials sector with Phillips 66 ( PSX) being today's basic materials sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the basic materials sector could consider Materials Select Sector SPDR ( XLB) while those bearish on the basic materials sector could consider ProShares Short Basic Materials Fd ( SBM).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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