From time to time we publish other peoples views in an attempt to add some balance to the debate regarding investment opportunities. Today’s article is about Potash as an investment sector and the companies that have caught this writer’s attention. This is the opinion of the author and not uranium stocks.

Many Potash stocks are looking increasingly oversold at these levels. While it is true that these juniors have had a tremendous runs this year, it is equally true that the demand for the product they are exploring for isn’t going away…. and not one Junior has started to drill yet.

Many Potash investors were also Uranium investors. Those who remember what key event caused Uranium equities to go ballistic will point to Water, or flooding of Cameco’s Cigar Lake mine as being the major catalyst for a huge surge in both equity pricing as well as the commodity pricing.

I wonder if water will again be a major catalyst, this time for the Potash juniors? Last night, the Globe published in their Blog Area (I guess we’re not at a point yet in North America where food shortages are worthy of front page news) a piece entitled; After the flood: A fertiliser boom by David Berman
I highly recommend anyone who has any sort of ag/fert stocks should carefully read this, as the author points out some very near-term facts and potential happenings which may impact for portfolio.

Quick Hits:

- Paul Matysek President and CEO of Potash One [KCL.T] (Current leader of our Potash Pack) will speak on BNN this AM.
- US Potash Corp. [TEL.V] yesterday closed its $5 million private placement.

Best CDN & US Potash plays

KCL.T MADE THE JUMP TO TSX. Consider them the leader in the Junior space for which others should follow

PON.V Potash targets in the Saskatchewan potash Basin. Friedland - Lundin factor. Backed by Billionaires - Lundin and Friedland. The momentum appears to be unstoppable!

With prices set on a yearly basis (not real time, not daily, not weekly, or even monthly…YES YEARLY!), there is literally nothing that can bring the current high Potash prices down for the next 11 months! In fact, last week, CIBC put out a report, which forecast the price of Potash to double again next year. Potash currently trades at $450 a tonne. Before potash was discovered in New Mexico, Germany was the world’s only supplier. In December 1915, when World War I cut trade between the United States and Germany, potash prices jumped from $35 per tonne to more than $500. In today’s money, that’s the equivalent of more than $10,571 per tonne!

Please feel free to add your own thoughts to the above commentary.

Have a good one.

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