Mosaic (MOS)

MOS

April 8, 2008

Even though first quarter earnings season has just begun, several of my Buy List stocks have already seen great success. In fact, one stock has already reported a ten fold increase! My Blue Chip Growth subscribers probably already know which stock I’m referring to, as it’s brought them over a 163% increase in their portfolios since I first recommended it in October of 2007. Benefiting from strong global sales, the weak U.S. dollar and the fact that it belongs to the very hot agriculture sector, Mosaic (MOS) has earned its rightful place as this week’s stock of the week.

Mosaic is one of the world’s largest makers of phosphate and potash crop nutrients. With the continued high price of corn, soybeans, wheat and other commodities that are in short supply, agricultural stocks like Mosaic are continuing to profit. However, belonging to a continuously growing sector isn’t the only factor that boosted Mosaic’s earnings.  Even though the company is located in Minnesota, more than two-thirds of their business comes from outside of the United States. Though the U.S. economy has caught the flu, most other countries are experiencing nothing more than an occasional sniffle. And that’s nothing to sneeze about (if you catch my drift).

So just how well did Mosaic do during their first quarter? Well, excluding one-time items, MOS earned $0.99 per share—that’s even more amazing when you consider that in last year's first quarter it brought in just $0.10 per share! Analysts had expected Mosaic to report $0.95 per-share earnings, so the company posted a 4.3% surprise to boot!

Just this past Monday shares of Mosaic reached an all-time high, after a Citi Investment Research analyst hiked his price target following the company’s excellent earnings announcement.  If you’re worried that Mosaic has already reached its peak, go ahead and put that fear aside. With corn prices continuing to reach record highs, Mosaic isn’t going anywhere but up for the foreseeable future. As an excellent buy below $130, I highly suggest you dig into Mosaic with both hands.