Wednesday, July 31, 2013

Wall Street Journal Risk

Here is a company that is taking a risk!

http://online.wsj.com/article/SB10001424127887323997004578640222410029126.html

The head of Uralkali is confident with the company's plans to drop out of the industry's cartel system, which has been used to build the company up and instead pursue a volume-based strategy, making investors very nervous. This would call for lower prices in order to hopefully increase sales volume. This could potentially give the company a leg-up on the competition and drive them from the market. This company is trying to pursue a new business environment of maximum output. Investors fear that the output will exceed the demand but Uralkali assures them that this is the right course of action.

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