Our latest recommendation, Potash (POT), is about as exciting as manure because that is exactly what it is.
Potash is a Canadian company, founded in 1975, and based out of Saskatoon, Saskatchewan. It is the leading producer of fertilizer throughout the world. They also have operations in the Middle East, Far East and South America. Although it sounds like a mundane company, it produces a very necessary and life-giving product.
As basic as it sounds, manure makes plants grow, including crops, which help feed the world.
According to all the measures I use to determine whether or not a stock is worth the investment, it is a financially solid company.
The stock is trading near its lows of the year (the low 30s) even though the stock market in general is high. A major reason for the stock declining in price is the recent dispute with the Russian government. I believe this situation is temporary, and should have no effect on the company in the long run.
Potash will also give you an almost unheard of and safe 5% dividend while you wait for the stock to rise. This is one of the highest dividends, and unlike bonds, this company has a history of raising dividends.
Potash’s board of directors owns a large amount of stock, which gives them the long-term perspective that any company needs.
Russ Kaplan, Heartland Adviser, August 16, 2013
