Compass Minerals could benefit quite a bit with the possibility of inflation not seen in some time. If inflation is lighter than expected, it is possible that we could see numbers close to that of the Reagan years. That said, and an expanding middle class in countries like China and India should increase demand for food. CMP has two businesses, the first is salt and the second and most importantly Potash. It is the higher grade of potash as it is used for exotic crops such as citris fruits. Since it is applied to crops with higher margins there is much more room to raise prices. It also would not be surprising if the company was purchased by someone like Potash Corp as it is much more cost effective to buy then to set up new areas. It could be very profitable for the buyer as the potash could be acquired and the salt business could be sold or placed as an IPO.
The current chart is bullish. The traditional three box reversal, is highlighted by a triple top breakout on September 2nd. New price objective is $69 from today's close of $59.90.
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