Record Sales Volumes Not Always a Good Thing

Mosaic’s volumes were up, but prices were down. Find out what this means for the industry’s future.

| More on:
The Motley Fool

Generally speaking, record sales are music to investor’s ears, unless of course, if that volume is accompanied by a 19% decrease in the price that the product commanded just a year ago. That’s exactly what Mosaic shareholders witnessed while listening to the company’s fourth quarter and full year earnings call. All told, a total of 2.6 million tonnes of potash, a vital nutrient in the agriculture industry, left Mosaic’s shelves in the quarter which trumped last year’s same quarter by 600,000 tonnes. While that’s all well and good for this quarter and fiscal year, it might not bode well for the next couple of years.

You see, potash is a fertilizer that doesn’t necessarily need to be reapplied on an annual basis because it tends to remain in the soil for up to three years. What that might mean for Mosaic and its peers is that this record demand might not be there if prices begin to rise over the next year or two. That being said, there are other fertilizers that could help buoy overall company sales if this is the case. For more, tune in to the video below.

Canada holds vast reserves of potash.  Another resource that we are extremely well-endowed with is uranium – the key ingredient for nuclear power.  Click here now to download our special FREE report “Fuel Your Portfolio With This Energetic Commodity”.  We think you’ll be surprised at how bright the future is for uranium, how far these 2 stocks have fallen, and how quickly they could rebound.  Click here now for the nuclear ride of your life!

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

 Fool contributor Taylor Muckerman has no position in any stocks mentioned at this time.  The Motley Fool does not own any stocks mentioned at this time.        

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

More on Investing

Paper Canadian currency of various denominations
Investing

The Best Stocks to Invest $2,000 in Right Now

Do you have some extra cash to spare? Here are three Canadian stocks to add to your watch list today.

Read more »

tsx today
Stock Market

TSX Today: What to Watch for in Stocks on Friday, November 22

Continued gains in gold, oil, and natural gas prices could give the commodity-focused TSX benchmark a boost at the opening…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

Hourglass and stock price chart
Stock Market

It’s Not Too Late: Invest in These TSX Growth Stocks Now

Solid fundamentals of these top TSX growth stocks could help them maintain strong upward momentum in the years to come.

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

dividends can compound over time
Bank Stocks

Is TD Bank Stock a Buy for Its 5.2% Dividend Yield?

TD Bank stock offers a rare 5.2% dividend yield—can it rebound from challenges and reward contrarian investors? Here's what to…

Read more »