Potash Corp of Saskatchewan (TSE:POT) (NYSE:POT)

Fertilizer demand in the last year has slowed dramatically. However, farmers can’t hold off for much longer on giving their crops the much needed nutrients. Potash helps increase crop yields and defends against pests and disease. Without potash crop yield are significantly lower. Farmers, especially in China where the population is larger, will start placing orders for potash ramping up the demand. They can’t hold off purchasing the nutrient forever since when they harvest their crop, it removes these valuable nutrients from the soil that within 18 months need to be replenished. Potash Corp of Saskatchewan (TSE:POT) (NYSE:POT) is the best run company in this business and is sure to profit the most. Potash Corp trades at a premium to its peers and is known to have the most powerful momentum on the way up. The chart below shows the surge in the share price when potash prices and demand skyrocketed in 2007 and 2008. The stock is cheap right now, but will quickly turn when the demand spikes in the coming year.