Mosaic: The Technical Take
Mosaic Co (NYSE: MOS) has had a tough go of it since February of this year, dropping from $53.75 to a low of $43.33 recently.
Prior to the rally that took the stock up to $53.75, Mosaic had frustrated shareholders with negative performance since peaking out at $63 and change in 2013, all while the broad equity market has hit new highs on a regular basis.
Does the company have the fundamental "goods" to press the stock higher for an extended period of time? Or, are the bulls destined for more disappointment? Below is a quick look at the fundamentals and technicals to answer those questions.
What The Bulls See
- An enterprise value of $17.7 billion versus a market capitalization of only $17.01 billion
- A price-to-book ratio of 1.68
- A price-to-sales ratio of 1.86
- A return-on-assets of 5.32 percent
- A return-on-equity of 10.52 percent
- 37.49 percent debt-to-equity ratio
- A current ratio of 3.24
What The Bears See
The Technical Take
Technicians note that an uptrend exists on Mosaic's long-term chart and will remain intact as long as $43.33 holds up as support. Below that level, no additional support comes into play until $38.98. For those long of the stock, some horizontal line resistance comes in at the $47.21–$48.23 range and then again at $53.75.
Buyers will almost certainly be aggressively stepping in and taking positions if Mosaic comes back down to the $43.33–$43.50 range.
The company's fundamentals look interesting from a buyer's perspective, especially if the revenues and EPS continue to increase on a quarterly basis after the miserable 2014. This could, barring any earnings disappointments, be a nice story for the bulls.
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