Cramer Says Potash Has Bottomed, But Likes Terra Nitrogen (POT, TNH)

Jim Cramer took a somewhat-unfamiliar route on last night's Mad Money, offering a technical analysis of the most popular fertilizer stock, Potash (NYSE: POT). Based on Cramer's price movement analysis, he feels that Potash has already put in a bottom. Cramer believes Potash's chart suggests a new bullish trend as it rose 60% in mid-December, and after slightly pulling back, it continued surging higher. Jim said "it is clear investors have stopped selling into the rallies..."

Staying true to his roots, however, Cramer also served up a healthy plate of fundamental analysis on Potash. He believes that a glance at the company's financials confirm a similar change in trend: production cuts have kept prices high and prospects for this spring's planting season are looking promising.

Despite the bullishness, Cramer said he is not a buyer of Potash. Instead, he likes Terra Nitrogen (NYSE: TNH), a stock he has been recommending for some time given its 10.6% dividend yield.

Ag stocks are trading slightly higher today. Shares of Potash are currently trading around $74.89, up 1% from yesterday's close. Meanwhile, shares of Terra Nitrogen are up more than 6% to $105.03, possibly seeing upside on the Cramer tout.

Potash Corporation of Saskatchewan, Inc. engages in the production and sale of fertilizers, and related industrial and feed products in North America.

Terra Nitrogen Company, L.P., through its subsidiary, Terra Nitrogen, Limited Partnership, engages in the production and distribution of nitrogen fertilizer products to agricultural and industrial markets.

You May Also Be Interested In

• Freedom Broker Downgrades Workday (WDAY) to Hold
• Rubrik Inc (RBRK) PT Raised to $115 at BMO Capital
• Affirm Holdings (AFRM) PT Raised to $124 at TD Cowen