Coming from a seasoned hedge fund player: He is shorting Interpid Potash (NYSE:IPI) ahead of EPS report
I shorted some IPI today at 27.50.... not enough to hurt me... but just based on a hunch that this weakest player of the group comes up short tomorrow morning with earnings and poor guidance.
I hear that Farmers are planting this spring w/o applying potash and phosphate (i guess side applications will come later). Prolly too much capacity in the system already and this will not help.
AGU didn't have a barn burner of a quarter either a few days ago.... potash volumes down 83%. AGU's demand estimates were similar to POT's in April.... Potash 30-40% lower, Phosphate 25-35% lower, and 10% lower for nitrogen.
Perhaps this is already built into IPI's price.... but perhaps not with the price at a 6mo high
IPI might announce cap ex deferrals, shutdowns, etc.
Additionally... I hear IPI has a checkered past with some associations with "promoters"