Best Three Stocks in Agriculture Chemical Space: Agrium Inc. (USA) (AGU) and More

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Potash Corp./Saskatchewan (USA) (NYSE:POT) is well positioned to benefit from improvements in the global potash market, which should be driven by continued strength in Latin America and Southeast Asia. Potash contracts in India (likely in 1Q) and renegotiating gas contracts with Trinidad should act as additional tailwinds for ’13. With over 80% of planned CAPEX spending complete, Potash is well positioned to return cash to shareholders in the event a deal with ICL (Israel Chemicals) is not announced. The shares got a hit after the company missed both its earnings and revenue estimates on Jan. 31. The shares are down 12% since the earnings release. I believe this is a good entry point for investors.

Foolish Bottom Line The whole note focuses on the fact that despite a strong 2012, three of these stocks are still expected to see a rally in 2013 given improving global agriculture fundamentals.

The article Best Three Stocks in Agriculture Chemical Space originally appeared on Fool.com and is written by Masam Abbas.

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