Mosiac Company $MOS
- Ticker: MOS
- PPS: 35.55
- Market Cap: 13.498B
- Mosaic Company is the leading U.S. producer and marketer of concentrated phosphate and potash.
- Potash is vital to the agricultural industry as a primary plant nutrient. Potash increases water retention in plants, improves crop yields, and influences the taste, texture, and nutritional value of many plants.
- High soil phosphorus (P) levels are essential to obtain high corn yields.
- Keeping it simple: Crops rely on fertilizer. Mosiac produces the fertilizer.
Why this is important you may ask?
- Usage of corn steadily rising in the U.S, creating more demand in the future.
- China buys 230 million bushels of corn in four days.
- In this article Randy Martinson of Martinson Ag Risk Management says China seems to have a good appetite for corn that isn’t diminishing, and follows by saying "I don’t think they’re done buying."
- This article explains the whole China and U.S corn fiasco better than I ever will.
Keeping it simple:
China’s demand outlook positive
China’s import demand for corn is expected to remain strong, fueled by high domestic prices, the need to restock grain reserves, and growth in feed consumption, the US Department of Agriculture’s Beijing attache said recently.
Supporting article about supply and demand of corn.
Institutional Ownership: 83%
Take a look at this, as it will show you everything you need to know about institutional ownership within Mosaic. Some Institutions have recently increased their position size aswell.
From u/tallsalesman " On June 18th there’s 3 separate call orders. Ones for $168k, ones for 29k, ones for 49k. The big call is for sept 17 for 1.3 million. "
Take a look at the options chain, particularly at 40 strike price. Their must be some high conviction that these will print.
There is probably so much more information that can be added, though I just want to get this out so people are aware of this company. I’m sure someone can do a way more in depth DD.
TL;DR- High Demand—->Corn and soybeans rising–>Higher prices of fertlizer and phosphorus—> Higher profit margins MOS—>Raises PPS?
First DD ever, chop me up if yall want lol.
Position: 1 40C expiring 6/18
Adding shares and maybe some calls as soon as capital free’s up.
Not a financial Advisor.
via r/wallstreetbets https://ift.tt/3qhG8Zq
April 27, 2021 at 04:53PM