Globe says Western Potash trimmed to "underperform"Globe says Western Potash trimmed to "underperform"
2013-08-07 04:06 PT - In the News
The Globe and Mail reports in its Wednesday edition that Western Potash (41.5 cents) has held up well since Russian potash producer Uralkali last week broke from a trading venture with its Belarus partner. The Globe's Darcy Keith writes in the Eye On Equities column that Western Potash shares are down about 10 per cent versus about 20 per cent on average for its junior peers. BMO Nesbitt Burns analyst Joel Jackson thinks this is about to change. He cut his rating to "underperform." He says lower potash prices have diminished "financing prospects for all junior potash developments for many years until global demand catches up to existing supply." He notes, however, that Western Potash has about $30-million in cash -- more than enough to ride out several years of a depressed market. Mr. Jackson no longer has a price target on the stock. The average analyst target, according to Bloomberg, is 82 cents. Wellington West Capital Markets analyst Robert Winslow was bearish on Western Potash in the Eye column on July 14, 2011, when it could be had for $1.38. Raymond James analyst Steve Hansen maintained Western Potash at "market perform" in the Eye column on Aug. 21, 2012. The shares were then worth 62 cents.
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