Value Microcaps Food, Agriculture and Soft Commodities

[kipp440]

FERTILIZER PRICES GOING BALLISTIC!

I just got off the phone with my largest fertilizer buyer in Nebraska. I have attached their website so you can see who they are:

http://www.cvacoop.com/

Last year they were buying 99 railcar unit trains of MAP (11-52-0) (mono-ammonium phosphate) for the mid$200's/ton delivered from Mosaic. Last week they were quoted $580/ton delivered. He took a few days to get back to them and was told the price this morning is $680/ton delivered "take it or leave it"! He was told product was being exported out of Florida for over $700/ton.

I am buying fertilizer stocks on this pull back. CNBC was slamming the fertilizer group, comparing it to the internet stock's parabolic rise during the bubble. There will be a bubble in fertilizer stocks, but they do have P/E's and those forward P/E's are way lower than anyone can immagine today.

I will try to keep you guys posted. I will be at the Nebraska and Wisconsin Agri Business Trade Shows all week next week and all of the major fertilizer companies are exhibiting. This is getting crazy!

Kipp