Potash Corp. Raises Q1 Forecast; Shares Jump (POT)

in Gold Gold Investing by admin — March 12, 2010 6:43 am | no comments

Fertilizer giant Potash Corp. ( POT ) on Friday significantly raised its first quarter forecast, citing higher potash demand, sending its shares soaring. The Saskatchewan, Canada-based company said it now expects first quarter earnings to range from $1.30 to $1.50 per share, which is much higher than its previous estimate of 70 cents to $1 per share. Potash said in a statement that “The upward revision reflects a sharp rebound in potash demand that is expected to drive a record quarter for North American sales volumes and strong offshore shipments, as well as higher-than-expected margins in nitrogen and phosphate.” Potash Corp. shares jumped $9.27, or +7.9%, in premarket trading Friday. The Bottom Line We removed shares of POT from our “recommended” list back on June 3, when the stock was trading at $116.39. The company has a .34% dividend yield, based on last night’s closing stock price of $116.93. The stock has technical support in the $100-$103 price area. If the shares can firm up, we see overhead resistance around the $120-$124 price levels. We would remain on the sidelines for now. Potash Corp. ( POT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .