Value Microcaps Food, Agriculture and Soft Commodities

[kipp440]

cl001 - KCL

Chen, I think one of the major fertilizer companies will buy KCL out. I think the fertilizer stocks can easily double in a year. If Mosaic or PCS hit market caps north of $80 BILLION, and KCL does the drilling and proves the reserves, one of them will buy them out. It could also be an Agrium or a foreign producer like Yara, who knows?

One thing I know from being in the fertilizer business for 20 years is that most of us in the business missed the moves of the past 2 years because we didn't think crop prices were sustainable. We had seen spikes before, only to see a big crop harvested and prices come crashing down. Now if you look at the cbot you can contract high grain prices for several years! This has never happened before.

An example I can give you is MFA (Missouri Farmers Assoc.) had millions of shares of CF industries at pre IPO prices. Look at this cahrt - When they hit a 100% gain they sold ALL of the stock. They missed a 1000% gain.
http://stockcharts.com/charts/gallery.html?CF

Someone is going to value the KCL 100+ BILLION worth of potash at more than the current $75 MILLION. I just don't know who, how, when, where, what........but I know it WILL happen.

Thanks for helping dig up the info on KCL.

Kipp