Potash Corporation of Saskatchewan Inc (NYSE: POT)
Potash Corporation of Saskatchewan is having an incredibly strong start to today's trading session. After starting the day off relatively green, the stock started spiking toward the top, and here we are a half-hour in with the gains continuing. Below, we'll talk about what we're seeing from the stock, why, and what we'll be watching for with regard to POT ahead.
What We're Seeing From POT
As mentioned above, POT is having an incredibly strong day in the market today. At the opening bell, the stock was already trading slightly in the green, but that proved to be the tip of the iceberg. As soon as the green light hit in the market, the stock started to climb dramatically and continues to gain. At the moment (10:03), POT is trading at $17.99 per share after a gain of $1.08 per share or 6.39% thus far today.
Why The Stock Is Headed Upward
As is almost always the case, we need to give credit to Trade Ideas for being the first to alert us of the upward movement on POT. As soon as we got the alert, the CNA Finance team started to work diligently to see what was causing the movement. This one took some digging, and to be quite honest, we're still digging for more details, but we believe we've found the gist of the reason for the movement.
The truth is that Potash Corporation of Saskatchewan isn't the only stock in the potash industry that's climbing. In fact, they all seem to be edging upward. Ultimately, it seems as though the gains in the industry can be tied to a rekindled relationship between Belaruskali and Uralkali, which was severed several years ago. This cooperation will likely lead to increasing demand in the entire potash industry. In a statement, Belarus President Alexander Lukashenko had the following to offer...
“They see now that business is difficult and it is hard to work alone. More than that, they can see that we can endure. New management suggests resuming Belaruskali-Uralkali cooperation.”
What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on POT. In particular, we're interested in the entire potash industry as this news continues to unfold. If our assumptions are correct, we could see further gains as demand continues to spike. Nonetheless, we'll continue to dig and bring you further details and developments as we dig them up!
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