Agricultural company, Mosaic Co( MOS ) reported
a decrease in its second quarter production estimate Wednesday.
MOS, which focuses on selling phosphate and potash, has reported
that they are expecting lower production this year due to a decline
in product demand. The company said that there is weak
international demand for its products since many distributors are
concerned to make purchases due to price risk. Volume is expected
to remain low until 2013.
The company originally estimated producing potash volumes in the
range of of 1.6 million to 1.9 million metric tons, but has changed
that estimate to a range of 1.3 million to 1.4 million metric
Production of phosphate is also expected to decrease in volume,
which the company now estimating a range of 2.9 million to 3.1
million metric tons, down from its previous estimate of 3 million
to 3.4 million metric tons.
Shares declined by 4% after this news in after hours trading
Mosaic shares were down $2.63, or -5.18% during premarket
The Bottom Line
Shares of Mosaic ( MOS ) have a 1.97% dividend
yield, based on last night's closing stock price of $50.75. The
stock has technical support in the $46 price area. If the shares
can firm up, we see overhead resistance around the $52-$54 price
Mosaic Co( MOS )is not recommended at this
time, holding a Dividend.com DARS™ Rating of 3.2 out of 5
Be sure to visit our complete recommended list of the Best Dividend Stocks , as well
as a detailed explanation of our ratings system here .
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