Is Potash Corporation of Saskatchewan (USA) (POT) A Good Stock To Buy?

Judging by the fact that Potash Corporation of Saskatchewan (USA) (NYSE:POT) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few hedge funds that decided to sell off their entire stakes by the end of the third quarter. It’s worth mentioning that Jean-Marie Eveillard’s First Eagle Investment Management dumped the biggest stake of all the hedgies monitored by Insider Monkey, valued at close to $473.5 million in stock, and Rob Citrone’s Discovery Capital Management was right behind this move, as the fund said goodbye to about $50.4 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Potash Corp./Saskatchewan (USA) (NYSE:POT). These stocks are SBA Communications Corporation (NASDAQ:SBAC), McCormick & Company, Incorporated (NYSE:MKC), Spectra Energy Partners, LP (NYSE:SEP), and Franco-Nevada Corporation (NYSE:FNV). This group of stocks’ market values are similar to POT’s market value.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $741 million. That figure was $238 million in POT’s case. SBA Communications Corporation (NASDAQ:SBAC) is the most popular stock in this table. On the other hand Spectra Energy Partners, LP (NYSE:SEP) is the least popular one with only 9 bullish hedge fund positions. Potash Corporation of Saskatchewan (USA) (NYSE:POT) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SBAC might be a better candidate to consider taking a long position in.

Disclosure: None