Stockchase Opinions

James HodginsAllana Potash CorpAAA.TOCOMMENTOct 20, 2011

Very volatile security. If you own, use any further rallies as an exit point. Big resource and will need a ton of capital to put it into actual production.
$0.93

Stock price when the opinion was issued

Mining
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DON'T BUY

The potash deposit this company has is fabulous. He’s been cautious on all Junior companies in this environment. You may have the greatest deposit in the world, but if you need financing, you may have to issue new stock. There is also the political risk.

DON'T BUY

Small, potash play in Ethiopia. Stock is bouncing all over the place. Potash prices are probably not high enough to have someone come in and spend all the capital needed to bring it into production.

HOLD

Company is fine but generally the potash market has not responded as well as the other fertilizer markets. There are also geopolitical risks. Potash is probably due for a bit of a bounce but will probably be short lived because of less supplier discipline than has been in the past.

DON'T BUY
Potash. When you are looking at a sector and the blue-chip in this sector is hammered down, there is no upside in going with the more peripheral play. You should really be looking at Potash (POT-T). This is the blue-chip and it has been bombed out and typically trades between $40 and $60 and is at the low end of that range.
DON'T BUY
In the horn of Africa. He prefers Saskatchewan.
BUY
An African play and there are likelihood of potential of take agreements coming in. Grades of potash coming in are excellent. In the $.80-$.85 level this looks interesting.
DON'T BUY
Potash in Argentina and Ethiopia. Shallow digging but not much infrastructure. Having got earnings yet. The whole agriculture sector is being cratered. The giants are closing down mines.
DON'T BUY
Seems like a fantastic deposit. It will depend on how the sector does and he is quite negative on it for the next 12-18 months.
DON'T BUY
Potash in Ethiopia. This is not one of her “go to” names. If you like potash and you want to get into the junior space, she would prefer something like Western Potash (WPX-T) or Karnalyte Resources (KRN-T), which are in safe jurisdictions and their profitable projects.
DON'T BUY
Most people under estimate how expensive it is to bring on potash discoveries. Be cautious at this point in the cycle because it is a junior that is not producing
DON'T BUY
Parabolic move, then it dropped. It is tough to say where you have support. Probably about 60 cents you have to sell it. Look to a big name.
HOLD
Potash. Doesn't follow the potash industry that much but he was in Ethiopia and from what he saw, their deposit is as good as the BHP deposit which is next door. Expect they will be taken over it eventually by BHP.
BUY
Likes this space. Potash is starting to perform well. Because it is in Somalia, you are taking on more risk with this company but everything works out you get more reward. Good management team.
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