1 Value Stock Near 52-Week Lows Worth Buying

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1 Value Stock Near 52-Week Lows Worth Buying

Transcript of 1 Value Stock Near 52-Week Lows Worth Buying

Page 1: 1 Value Stock Near 52-Week Lows Worth Buying

1 Value Stock Near 52-Week Lows Worth Buying

Page 2: 1 Value Stock Near 52-Week Lows Worth Buying

5 solid reasons Potash Corp. is a buy

Page 3: 1 Value Stock Near 52-Week Lows Worth Buying

Fertilizers: A business with tremendous potential

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Daunting challenge ahead

Data source: FOA. Graph source: PotashCorp

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Answer to tomorrow’s problem

The challenge: Feeding a rapidly growing population even as arable land shrinks.

The answer: Fertilizers, as they provide essential nutrients to soil that improve crop productivity.

The significance: Fertilizers account for nearly 50% of the global crop production today.

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Potash Corp.: The global leader in fertilizers

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World #1

Position as of August 31, 2014. Data source: Fertecon, CRU, IFA, Potash Corp. Graph source: Potash Corp.

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World #1

Potash Corp. is the world’s largest fertilizer company, producing all three primary nutrients -- potash, nitrogen, and phosphate. It is the largest potash producer.

Potash Corp.’s potash capacity is projected to jump 27% this year, thanks to expansions. That should secure its leadership position in the long run.

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Strong growth despite macro challenges

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Cash flows heading north

Source: Potash Corp.

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Fertilizer markets turning around

Macro headwinds may have dented Potash Corp.’s bottom line in recent years, but its cash flows continue to grow.

Even in a challenging business environment, Potash Corp. expects to earn $1.75-$1.92 per share this year, compared to $1.82 earned in 2014.

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Cash flows to expand further

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Capex

Source: Potash Corp. BMO Capital Markets Farm to Market Conference presentation, May 2015

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Free cash flows

Potash Corp. is in the last leg of a major multi-year expansion program costing nearly $8.4 billion.

With its capital expenditures expected to taper in coming years, Potash Corp. could generate significant free cash flows.

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Shareholder returns: Solid and growing

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Rewarding shareholders a priority

Source: Potash Corp. Annual Report 2014

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Great growth potential

Quarterly dividend growth: More than 11 times since 2010.

Current dividend yield of 5.5% -- the best in the industry.

Greater potential free cash flows should mean higher dividends in the future.

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