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Surprise Friday – Fertile Ground

Do ag stocks really have room to grow? Find out from Mosaic CEO Jim Prokopanko, Friday’s surprise guest. Following is a summary of his main points.

At what point do you worry about the rising costs of raw materials?

“I will worry when we can’t raise the price of fertilizer beyond the prices of the raw materials. Right now the demand for fertilizer has allowed us to raise prices and pass along the costs,” replies Prokopanko. “The demand remains strong. As world food demand grows it’s all we can do to keep up with the surge in demand.”

The phosphate portion of your business grew 82% year over year. Can you maintain that rate of growth?

“There’s still more room and we’re showing considerable improved performance in revenues and mining operations,” replies Prokopanko. “There are only so many places you can get phosphate fertilizer or potash fertilizers. We sell our product to 66 different countries. In fact, there are people lined up to take our product. This year we don’t have enough product in North America to supply all our customers here.”

What do you think is the biggest risk to your story?

“The price of the food commodities,” replies Prokopanko. “If those prices come off, we’ll see a slack in demand for fertilizer products.”

Traders what do you think?

As long as the commodity story stays strong, I like this stock.


If you look at the forward P/E the stock looks cheap to me, adds Pete Najarian.

Surprise Friday

If you look at the forward P/E the stock looks cheap to me, adds Pete Najarian.

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Trader disclosure: On Apr. 18, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (DIS), (INTC), (MSFT), (YHOO); Najarian Owns (AAPL), (AMR), (BIIB), (CSCO), (MSFT), (NOK), (TSO), (XLF), (YHOO), (ETFC), (EMC), (NVS); Najarian Owns (BKC); Najarian Owns (BHI) Calls,  (BSC) Calls, (COP) Calls, (DD) Calls; Finerman Owns (GS); Finerman's Firm Owns (JCP), (MSFT), (NOK), (PZN), (TSO), (VCLK), (VLO), (YHOO), (GE), (NOK); Finerman's Firm Owns (FNM) Calls; Finerman's Firm Is Short (COF); Charles Schwab Is A Sponsor Of "Fast Money"; GE Is The Parent Company Of CNBC

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