Price Bubbles Always Burst: Has Fertilizer Maker Mosiac Peaked?

Mosaic (MOS), a leading producer of concentrated phosphate and potash crop nutrients, climbed from a $15 close on January 3, 2008 to $161.08 on June 17, 2008, a 973.87 percent increase. This volatile stock closed on July 18 at $127.13.

Does the current price drop represent the beginning of longer-term downside or simply a price correction along a longer term upside? No one knows for certain, but commodity prices will eventually drop and when they do, MOS will head much lower.

I (RAH) do not own MOS.

Related Articles and Links:

Price Bubbles Always Burst: Downsides Are Rapid and Unrelenting
Price Bubbles Always Burst: Downside Losses Cancel Upside Gains
Price Bubbles Always Burst: Mining Giant BHP Billiton Is In a Price Bubble
Price Bubbles Always Burst: Speculative Oil Bubble Will Eventually Burst

Posted July 21, 2008.

Home | Making Money | Portfolios | Dividends | Retirement | Articles | Charts | Stocks | Tables