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Potash Corp Analysis Report


The Share Price of the Company

Potash Corp is one of the leading companies in the sector of global fertilizers production (Shmuel n.p.). It is believed that the “long-term demand outlook” for fertilizers is “robust” (Shmuel n.p.). At present the share price of the company is rather high. For instance, it reached 46.27 USD during the latest trading date at NYSE (“Share Price Lookup”).

However, it is necessary to note that the price has changed slightly. It is possible to trace steady growth. For instance, the share price in the beginning of the year (January 3, 2012) was 43.73 USD, but it reached 45.48 USD on January 17, 2012 (“Share Price Lookup”). In the beginning of February 2012 (February, 3) the price reached the mark of 46.93 USD, but it went down several days after that and reached only 45.99 USD.

On February, 28 it went as low as 47.13 USD. It went down and on March 15, it reached 42.87 USD. After that there was no such a decline. Since March there is a steady growth. However, the price did not reach the mark of 46.93 USD, the share price is now 46.27 USD. Therefore, the share price is not that stable at present.

Changes in Prices Over Time

Notably, the last year share price in this period of the year (April, 4 2011) reached as high as 61.44 USD (“Share Price Lookup”). In the beginning of 2011 the share price reached only 52.21 USD. On April, 1 2010 the share price was rather low as it reached the mark of 39.17 USD. Interestingly, in 2007 (on March, 30) the share price was 17.77 USD. In 2000 the share price was only 2.74 USD.

Notably, in the beginning of the company’s history (in 1990) the share price was 0.69 USD (April, 2). Thus, it is possible to trace the growth of the share price of the company. Admittedly, there were some periods of slow growth, and there were periods of certain decline. Nonetheless, the share price of the company has been growing steadily since 1989.

Ownership and Investment

The company was founded by the government of the province of Saskatchewan. Investment of some American businesses was also used. The company obtained numerous subsidies from the government. In early 1980s it was decided to make the company partially public owned.

At present according to the company’s 2011 Annual Report in the beginning of 2012 (on February 21) “there were 1,563 holders of record of the company’s common shares” (PotashCorp 2011 Annual Report 156).

The company also invests in several companies worldwide. For instance, Potash Corp. owns 22% of shares of Sinofert Holdings Limited. It is also important to mention the company’s 32% ownership of Sociedad Quimica y Minera de Chile S.A., and the company’s 28%ownership of Arab Potash Company Ltd (PotashCorp 2011 Annual Report 101).

Thus, the company has invested in some businesses in Jordan, Israel and China. For instance, the company owns 14% of shares of ICL (Israel). The company has subsidiaries in Ethiopia as well. Basically, the company intends to develop the business of fertilizers production across the world.

Interestingly, American companies have been also interested in investing into Potash Corp. However, Canadian government tends to ban any attempts on the part of non-Canadian companies to invest into such strategic companies as Potash Corp (Brent n.p.).

The Company’s Strategic Plan for Expansion

The company has not got particular strategic plan where all stages and steps are highlighted. Nonetheless, the company is going to follow the plan of development and further integrity. The company is planning to co-operate with and develop potash-related businesses in Asia, the Middle East and South America (PotashCorp 2011 Annual Report 10).

The company has recently announced its intention to develop potash-related business in Ethiopia. Thus, Allana Potash Corp. has announced its advances in the field (“Allana Intersects Further Strong Potash Mineralization”).

Allana announced that it achieved great results. At this point it is necessary to note that some subsidiaries of Potash Corp. are not that successful. For instance, Ethiopian Potash Corp. has faced severe financial constraints (Koven n.p.).

In fact, some analysts claim that the situation is really dangerous for the company as it can go bankrupt if some urgent measures are not taken. Therefore, the company has to address these issues.

Thus, instead of precisely outlined expansion Potash Corp is more concerned with the development of its subsidiaries. However, the company is still working on further development of businesses in such parts of the world as the Middle East, Asia and South America (PotashCorp 2011 Annual Report 28).

Recent News

The most recent news, concerning the company, can confirm its commitment to improve the living standards. The company is committed to develop the society. Thus, the company donates $500,000 to “support local medical education program in New Brunswick” (“PotashCorp Helps”).

This program will help to develop health care services in the area. Apart from this, the company has launched another company to develop education in Saskatoon donating $375,000 to improve students’ nutrition.

Thus, the company strives for development in different areas (“PotashCorp Feeding the Future”). The company provides financial support and helps communities to develop. This creates a positive image of the company which also pays a lot of attention to environment and sustainability. Apart from charity projects, the company also highlighted the new contract signed by Canpotex and Sinofert.

The contract is a part of Memorandum of Understanding which was signed by the two companies in 2010 (“Canpotex and Sinofert”). This announcement suggests that Potash Corp is committed to develop the business in different parts of the world. It also verifies the company’s interest in Asian businesses as well.

Human Resource Management

According to “Core Values and Code of Conduct” the company invests in the development of its employees (5). The employees are trained and well informed. They have the necessary knowledge of the company’s values. The company sets numerous safety programs to ensure its employees’ safety.

Remarkably, the company provides “science-based explanations of how” their products “contribute to global food security” (“Core Values and Code of Conduct” 5). The company’s employees are encouraged to raise issues and concerns. This makes every employee involved and interested in the development of the company. The employees are also encouraged to make ethical decisions.

These decisions should be made in interactions with other employees, executives, partners, etc. Thus, it is possible to state that the company pays a lot of attention to the development of its employees who are encouraged to self-develop and help to develop the company. Numerous programs (safety programs, training courses, etc.) increase the employees’ loyalty.

Works Cited

Allana Intersects Further Strong Potash Mineralization and Extends Drilling Program. Market Watch. 2012. Web.

Brent, Paul. “Investment Pours into Energy Sector, Despite Challenges.” The Globe and Mail. 2012. Web.

Canpotex and Sinofert Sign New Contract. potashcorp.com. 2012. Web.

Core Values and Code of Conduct. potashcorp.com. 2007. Web.

Koven, Peter. “Ethiopian Potash on the Brink of Collapse.Financial Post. 2012. Web.

Potash Corp 2011 Annual Report. Potashcorp. 2011. Web.

PotashCorp Feeding the Future of Saskatoon Students. Potashcorp. 2012. Web.

PotashCorp Helps Province Focus on Health Education. Potashcorp. 2012. Web.

Share Price Lookup. Potashcorp. Web.

Shmuel, John. “Four Canadian-Listed Companies Exposed to Global Fertilizer Growth.Financial Post. 2012. Web.

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Stevens, G. (2020, February 12). Potash Corp Analysis [Blog post]. Retrieved from https://ivypanda.com/essays/potash-corp-analysis/

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Stevens, Grace. "Potash Corp Analysis." IvyPanda, 12 Feb. 2020, ivypanda.com/essays/potash-corp-analysis/.

1. Grace Stevens. "Potash Corp Analysis." IvyPanda (blog), February 12, 2020. https://ivypanda.com/essays/potash-corp-analysis/.


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Stevens, Grace. "Potash Corp Analysis." IvyPanda (blog), February 12, 2020. https://ivypanda.com/essays/potash-corp-analysis/.

References

Stevens, Grace. 2020. "Potash Corp Analysis." IvyPanda (blog), February 12, 2020. https://ivypanda.com/essays/potash-corp-analysis/.

References

Stevens, G. (2020) 'Potash Corp Analysis'. IvyPanda, 12 February.

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