Mosaic (NYSE:MOS) Shares Drop Back to Earth on No Potential Short-Term Suitor

Shares of Mosaic (NYSE:MOS) have fallen as quickly as they rose on the news Cargill was selling their 64 percent stake in Mosaic.

Speculation there was a buyer waiting in the wings was quickly dashed, and the share price of Mosaic has plunged today as a result.

The structuring of the deal took a lot of the short term luster off the stock, which focused on longer term considerations. That, probably more than anything, burst the speculative bubble quickly.

That changes nothing concerning Mosaic as a company, as Canaccord notes, We reiterate our recommendation on the shares of Mosaic following the announced transaction by Mosaic and Cargill that would result in the distribution of Cargill’s 64% (286 million shares) equity stake in Mosaic to Cargill’s shareholders and debt holders. Although complex, this transaction does not alter our view of Mosaic’s earnings expectations, nor our target price for the company."

Canaccord Genuity maintains a "Buy" rating on Mosaic (MOS), which was trading at $78.25, falling $6.82, or 8.02 percent, as of 1:13 PM EST. Canaccord has a price target of $96 on Mosaic.