Feel the Effects of the 52 Week High - POT

As recently as October 29th, I have been recommending Potash. Well, today the stock hit its 52 week-high and well, its quite a buzz. The high was caused by speculation of a takeover. Well, I never buy on speculation, but I sure as hell sell when I can lock in some bubble profit - I sold a good portion of my holdings today at 136 and change.

According to BMO analyst Mark Steele, "a recent 'abnormal' move in the company's credit default swap spread (which reflects the perceived risk of owning a company's debt), may mean that the world's biggest maker of fertilizer will be taken over or is in negotiations to merge with another company." To me this is a win/win situation. Sell part of your position and lock in profit. Now, if the supposed take-over actually happens, the rest of your shares will accumulate more profit. If the crystal ball is wrong, and the take-over does not go through, eventually the price will drop down to an attractive price, and you can re-buy.

In these dark days of credit crunch panic, its nice to get a little early Christmas present. Thanks Santa.

I am still long on fertilizer and agriculture in general. Stay tuned!

DISCLOSURE: I own shares of Potash Corporation of Saskatchewan Inc. Always do your own research before buying a stock or any other investment. Most important, read my blog!

Tell everybody you know and even those you don't, about Inspector Stock .com

Tell your friends. Tell your enemies. Tell the enemies of your enemies. Tell your mom. Tell your dad. Send a telegram. Send an email. Buy some Krylon and paint it on a wall, under a bridge, get a tatoo. InspectorSTOCK.com.

Open your mouth and say "Inspector STOCK.com"

Hey, I do this for free - help a brother out.

JUST SAY NO TO DRUGS