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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (52027)	8/8/2013 9:14:13 AM
From: E_K_S	Respond to of 78615

Re: IPI Transportation costs are one of the largest expense for customers for Potash and IPI being the only U.S. producer, one of my value propositions was that IPI's facilities are located close to their customers thus lower transportation costs. You do raise some good points on (1) cost of mining product and (2) cost of developing the mine. I also thought the recent 40% drop in the stock price was over done. At the current price, IPI may be a candidate for a larger integrated fertilizer/resource company acquisition. Still, IPI has issues, (1) a high cost producer, (2) only a one product manufacturer w/o any other revenue streams from other products and/or services and (3) relative low market cap at $856mln w/ limited capital for expansion. I suspect I will trade my shares rather than hold for long term. BHP is my 3rd largest position in the portfolio so I do have exposure to this sector. EKS