OTCPK:PTAUF - Post by User
Post by
materialsgirlon Sep 11, 2014 2:22pm
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Post# 22927838
analysts may be missing the point
analysts may be missing the pointGenerally analysts are neutral or have a hold rating on POT. The price earnings ratio is in the 16 to 20 range for fertilizer producers (much less for the retailer Agrium) and analysts see this as fully priced. Me too. Until I look at other safe dividend paying categories such as pipelines or railway companies. They are trading at 25 times earnings or sometimes more and maybe 30 in the USA.
In this way of looking at a 4% divi paying POTASH Corp it is a bargain. Certainly not dirt cheap but still a bargain. The POT capex plans (going down) will facilitate a 50% increase in the divi over the next 4 or 5 years
It would be attractive as a takeover target but alas we know that this will not be permitted any time soon
mat