Mr Doyle, the CEO of Potash Corp., has made rich many people around the world. Today Israel Chemicals (partly owned by POT) lifted 8%, making up for my losses during the last two bad years. The immediate casue is Billiton's offer to buy POT, electrifying the market. "The fertilizer industry is emerging from the recent global economic downturn, and we feel strongly that PotashCorp shareholders should benefit from the current and potential value of the Company." Well said, Mr Doyle.
Addendum for those unfamiliar with Mr Doyle: Have you ever tried to organize a group action? My first experience in organization was a summer camp for a Zionist youth movement in Argentina. Soon I felt my chaverim were not cooperating and gave up. I understood that am not a born leader and am in awe of the natural ones. Now imagine to organize a worlwide fertilizer cartel. I cant imagine how he got competing organizations in Russia, BieloRussia, Ucraine, Germany, Israel, etc. to act in coordination against their immediate interest. Mr Doyle, a Canadian, did it. He is a magician.
5 comments:
Me: POT shareholder. ;-))
We are brothers in POT (and in unpolitical incorrectness).
From what I read his cartel briefly functions because the difficulty in starting new potash mines but likely won't last thanks to Russian greed and short-sightedness. The World does have to eat though, so who knows.
Again I can't help but shake my head at the inability of the Moslems to create value-added products from their oil. Fertilizer would be an easy source of good-paying jobs but all they can do is sell the raw material. Iran and Iraq even import gasoline!
You're thinking like a Jew - you see a profit opportunity and want to exploit it, bringing wealth to yourself and jobs to those you employ. Moslem minds just don't operate on those terms, especially not the minds of their corrupt rulers. Having a class of wealthy entrepreneurs and comfortably employed workers is not in the ruler's interest as they see it. Any source of independent power or wealth is suspect (and probably with good reason given the local custom of lopping off the heads of rulers who lose power.
K
The cartel will last because of the high entry price of the potash business. No one wants to invest in unstable countries, so potash is being exploited only in Canada and a few other countries.
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