Mosaic Co (MOS), CF Industries Holdings, Inc. (CF), Agrium Inc. (USA) (AGU): Billionaire Agricultural Activism Afoot

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Potash accounts for around 35% of Mosaic Co (NYSE:MOS)’s revenue. The recent news of the disbanding is expected to push the average sales price for potash at Mosaic down as much as 15% for fiscal 2014. Earnings per share estimates for 2014 fell from $4.60 to around $4.00.

Bottom line

CF is a solid investment with a solid cash flow that Loeb should help get returned to investors. Meanwhile, it appears both Agrium Inc. (USA) (NYSE:AGU) and Mosaic will be faced with serious pricing pressure. CF trades the cheapest at 6.6 times earnings, while Agrium is at 8.9 times and Mosaic at 9.3 times. I like CF, but am avoiding both Agrium and Mosaic for now.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool owns shares of CF Industries Holdings (NYSE:CF).

The article Billionaire Agricultural Activism Afoot originally appeared on Fool.com and is written by Marshall Hargrave.

Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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