Who Dares Challenge Goldman?
Have ag stocks stalled? Goldman Sachs sure thinks so but Tim Seymour says, ‘not to fast!’
At issue is a note that Goldman put out on Wednesday in which they downgraded both Potash and Mosaic to ‘Neutral' from ‘Buy' citing weakness in fertilizer prices.
Goldman also lowered its 12-month price target on both stocks; Potash now has a price target of approximately $124 and Mosaic’s target is $64.
"Despite expectations for robust spring demand, our channel checks suggest the planned domestic potash price hike is not going through and recent nitrogen and phosphate prices have weakened," writes Goldman Sachs analyst Robert Koort in a note clients.
"We also see increased risk from poor weather delaying field work and moderating [agriculture] commodity prices."
Tim Seymour sees the situation a little differently What does he have to say? Watch the video now and find out!
Got something to to say? Send us an e-mail at email@example.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to firstname.lastname@example.org.
Trader disclosure: On Apr 14, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Kelly Owns (DHI), (MS), (GOOG), (IBM), (TXN), (S); Terranova Owns (AXP), (HES), (TER), (APA), (YHOO), (MOS), (SWN), (XCO); Terranova Is Short (LCC); Terranova Owns (C) Calls; Kelly Owns (FXE) Puts ; Kelly Owns (FRE); Adami Owns (INTC), (GS), (AGU), (MSFT), (NUE), (BTU), (C) ; Seymour Owns (BAC), (EEM), (F), (INTC), (LVS), (SBUX), (AA), ( BX), (MGM); Najarian Owns (BAC) Call Spread; Najarian Owns (C) Calls; Najarian Owns (FITB) Calls; Najarian Owns (LVS) Call Spread ; Najarian Owns (MOS) Call Spread; Najarian Owns (PCX); Najarian Owns (YHOO) Call Spread; Najarian Owns (YUM) Calls; Gartman Owns (DRI), (PNRA), (CMG); Cortes is Short (LVS) & (WYNN)
For Tim Seymour
Seymour's Firm Owns (POT)
For Brian Kelly
Kelly's Firm Owns (DHI),
Kellys Firm Owns (MS)
Kellys Firm Owns (GOOG)
Kellys Firm Owns (IBM)
Kellys Firm Owns (TXN)
Kellys Firm Owns (S)
Kellys Firm Owns (BX)
Kellys Firm Owns (CCI)
Kellys Firm Owns (TLT)
Kellys Firm Owns U.S Dollar
Kelly's Firm is Short Euro
For Patty Edwards
Edwards Owns (JPM) for Clients
Edwards Owns (INTC) for Clients
Edwards Owns (GS) for Clients
Edwards Owns (MCD) For Clients
Edwards Owns (HD) For Clients
For Mike Khouw:
Cantor Fitzgerald is a Market Maker in (GE)
Cantor Fitzgerald is a Market Maker in (BAC)
For Mark Kalinowski
Janney seeks investment banking business from (MCD) (YUM)
Janney is a market marker in securities of (MCD)
CNBC.com with wires