Hi Everyone,
On Jan. 23, 2008 potash traded in a range of $125.00-$105.00
They were having their news release Jan. 24. 2008
Fertilizer prices were climbing and climbing. This one was a no brainer that news was going to be good. I had quite a # of shares.
I watched with amazement that 23 day of Jan. 2008.
The stock went into free fall as stops were taken out I bought at $118.00, more at $110.00 and last buy at $108. I ran out of money after that. It went lower to $105.00. I then started to get a stomache ache. I started second guessing myself and drove myself nuts with the what if's.
The next day earnings were announced and here they are:
Potash Corporation of Saskatchewan Inc. (PotashCorp) today announced fourth-quarter earnings of $1.16 per share(1), a 100-percent increase over the same period last year and the highest quarterly earnings in company history. This raised 2007 earnings to $3.40 per share, 72 percent higher than the $1.98 per share of 2006, marking the fourth consecutive year of record earnings. Net income for the quarter reached $376.8 million, more than double the $186.0 million reported for last year's fourth...
The stock was up to $135+ the next day. Someone wanted in bad and set off the stop losses. My point here is that even good old TSX traded potash gets manipulated by the greedy.
I have a bag of examples like this. Today you have to ask yourself :
was there bad news: NO
Is the management the best: YES
I am sure all of you out there can come up with a ton of examples like mine. Sometimes it's good to reflect on those bag of examples before you do something you are sorry for.