One the most brutalized stocks on Wall Street is going through a renaissance. The agricultural stock Mosaic has been beat up lately. The fertilizer specialist has been hammered because of weakness in crop prices and corresponding falls in fertilizer. Shares are down 18% this year. The company just released earnings where it cut profit forecasts and then something amazing happened-it surged 7%.
Analysts and the market suddenly decided the stock was too cheap. One JP Morgan analyst summarized, saying "Mosaic has been a poor equity performer over a one, three, five, and 10 year period … And we think the shares are now priced to create a favorable risk-reward balance".