MOS - Mosaic's Rise Might Not Last

• Mosaic is up more than 66% this year and analysts are all-in on revising earnings higher for the rest of the year. Rising fertilizer costs paint a rosy picture.
• With all expectations on continued price growth, it seems like the simultaneous rise in input costs is going unnoticed.
• All industries have a price point where economics begin to break down, and the agribusiness industry was showing signs of weakness before fertilizer prices exploded.
• Inventory levels sold at current prices will give a short term bump to the stock, but ultimately the margin compression that is coming might shrink earnings.
• Margin compression from the farming industry’s inability to support continued fertilizer price growth and the costs of oil and natural gas continuing to climb could put pressure on the stock.

For further details see: