Replies to post #45 on Encanto Potash Corp (EPO)

[AAAIRMAX]

In Cancun last week so missed the panic. Can't say that I like it, especially when I doubled my position a few weeks back, but they have a large chunk of land, they drilled five great holes, enought for them to proceed with the 43.101, and their results rival those of POT. The market never likes delays, but this has to be a take out target with their land package. I have to think that First Nations and Encanto are chatting with large mining companies.

And here I was hoping to come back from holidays with a big smile, not a sleepless night@#$%^&*()_?

[AAAIRMAX]

Encanto Sells Off On News. Opportunity or Breakdown?

Encanto (TSXV EPO), along with its partners the Muskowekwan First Nations, has been completing a National Instrument 43-101-compliant initial resource calculation on its Muskowekwan project in Saskatchewan. Encanto completed drilling all required infill holes and released its final assay results in December. The potash beds confirmed their consistency, but that initial resource calculation has missed earlier delivery dates for Q3-Q4 2010. According to management it is still due in Q1 2011.

Today Encanto announced a modification to the report's scope of work. The market hates delays, and so has already been on edge, but now it fears that management may not have been that pleased with the draft report, and hopes that by incorporating a range of mining methods it can achieve a sufficiently robust alternative that maximizes the projects' valuation, and the recent market cap the market was willing to give the company.

We have seen this "sell on news" reaction before with Encanto, as traders have aggressively tried to push the market back, evidenced by the wide trading range in the upper channel of our daily chart. But we need to keep in mind that results to date are very positive, with assay grades and thicknesses similar or better than the published grades from other Canadian producing mines - and remember that Saskatchewan boasts the world's highest grades.

Encanto recently completed a $5.0 million unit funding at $0.40 with another $500,000 raised via flow-though shares at $0.50. These 13.5 million shares don't come free-trading until April 18, so there's no material liquidity event that underlies this sell-off.

Technically, there are several trading channels and clear trends with defined support and resistance areas portrayed on our presented chart. Today the share price found strong support, bouncing off the lower trend line at $0.38, which coincides with the 50% Fibonacci line. All of our key indicators are flashing oversold. The $0.38 low of the day was formed early, essentially right after the open, and the subsequent retest of the lows met strong buying at $0.39.

We are adding 125,000 shares around the opening tomorrow, to re-establish a 250,000 share position for the GSW Model Portfolio.

Full Article
--------------------------------------------------------------------
For further information, please contact:

Vanguard Shareholder Solutions