Â Description: Potash Corp of Saskatchewan (POT.N) (POT.TO) said on Thursday quarterly profit fell 80 percent as fertilizer demand and pricing weakened, prompting it to dim its outlook for the sector and sending shares lower.
Questions for discussion:
- As a financial manager of a commodity firm, would you wait until demand picks up again in 2010, as suggested in the article, or would you cut price to boost sales? Explain your thinking.
- Why has the stock price not collapsed given the poor financial situation?
- Would you be looking at mergers and acquisitions of other potash miners? Explain your thinking.