MOS - Investors Take Note Mosaic Has Turned Into The Ultimate Value Play

2024-05-03 17:25:25 ET

Summary

• Mosaic Company's stock price has dropped below $30, reminiscent of pre-pandemic levels.
• Shrinking profitability in the fertilizer market is a major challenge for Mosaic and other producers.
• Despite short-term pricing challenges, Mosaic sees potential for sustained growth in demand for its products, especially in key agricultural regions like Brazil.

Introduction

I'm getting very strong 2020 vibes. Back then, I started investing in The Mosaic Company ( MOS ) , as part of a big research project for a hedge fund.

Right after the first wave of pandemic-related lockdowns ended, we decided to buy this fertilizer producer, as it had everything we were looking for, including a dirt-cheap valuation as nobody wanted to own cyclical commodity stocks....

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