Has Mosaic (MOS) Gone as Far as it Can Short-Term?

In mid August, BHP (NYSE:BHP) made an ill-fated run at Potash Corp. (NYSE:POT).

Since then the entire fertilizer industry has been on a tear. Though valuations for some of the bigger firms may have bulged, their market prices have remained unrepentant. Talk of mergers, upped revenue outlooks, and dire crop forecasts have encouraged speculators to keep to a full gallop.

Mosaic (NYSE:MOS), one of the larger producers of concentrated phosphate and potash, has enjoyed the bid-up, and basked in the “glow of association” as a possible takeover target since October. Last Friday the stock reached $89.10, a two year high.

Not that the company has just been carried along for the ride. Mosaic has had its shoulder to the wheel. It has been doing brisk business and posting great numbers.

Recent revenue and earnings growth for the company have been stunning. Last quarter (4Q10) chalked up revenue growth of 56% year over year. Gross margins have been widening nicely and net income growth was up a scorching 89% from November 2009.

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