Chillin' out till it needs to be funded
Never in all my investing days have I witnessed a stock sell off so hard on a 284% per-share earnings pop.
Then again, Mosaic NYSE: MOS did report a 12-fold earnings gain back in April, so I guess 284% is pretty puny.
Of course, we investors are a forward-looking bunch on our best days, anyway, and future results count most to us. Mosaics management must have said some seriously shocking stuff about its outlook to invite a 41% haircut yesterday, right?
Are there liquidity concerns here, such as those hammering General Growth Properties NYSE: GGP this week? Some bad currency bets, like the one that stung Sadia NYSE: SDA? Not at all. Mosaic is sitting on a net cash position, and its manageable debt load is being speedily whittled down. Theres nothing wacky going on with currency derivatives.
The worst thing I heard yesterday is that the phosphate pipeline is better-supplied than it has been for some time. Specifically, U.S. producer stocks were recently 8% above their three-year average. Ooh, spooky