This Canadian company produces about a quarter of the world's potash, making it a leader in the fertilizer sector, which should benefit from an eventual return to high grain prices and a global uptick in demand for food.
The recession hit farmers hard, and many avoided buying fertilizer. While this depressed earnings in the near term, farmers will eventually have to buy again or risk damaging their fields, a situation that could create a significant earnings pop for Potash in the future. According to a recent analyst note from Jeffrey Zekauskas at J.P. Morgan, the company's earnings could jump by 54% in 2010
--K.B.
