Sasha Cekerevac, co-editor for Penny Stock Detectives, believes that agricultural commodity penny stocks will continue to yield big returns, as the global population will exceed seven billion people this year. With this backdrop, Cekerevac is certain there is one basic necessity on everyone’s mind: how are we going to feed the world?
New York, NY (PRWEB) February 20, 2012
Sasha Cekerevac, co-editor for Penny Stock Detectives, believes that agricultural commodity penny stocks will continue to yield big returns, as the global population will exceed seven billion people this year. With this backdrop, Cekerevac is certain there is one basic necessity on everyone’s mind: how are we going to feed the world?
“It’s basic economics; with more demand, you get higher prices, unless you also get a proportional increase in supply. But there is only so much land mass that can be farmed,” was Cekerevac’s comment on the situation.
Since the supply of farmland is limited, Cekerevac argues that the only way to increase the yield of existing farmland is by adding fertilizer to the soil. Cekerevac goes on to explain how fertilizer is made of three main components: nitrogen; phosphorus; and potash. Potash, a product made from natural potassium salts, is essential for plant growth and is in huge demand, but it is costly.
“While I focus mainly on penny stocks, for investors looking to research a large, diversified fertilizer producer, one interesting name is Potash Corp. of Saskatchewan, Inc. Potash Corp. missed expectations with its corporate earnings earlier this year, but this appears to be a short-term bump for long-term investors,” noted Cekerevac.
While he wouldn’t recommend stepping in immediately to buy potash producers, Cekerevac would pay attention to how the next corporate earnings outlook appears for these fertilizer companies and the guidance they issue.
According to the Penny Stock Detectives editor, a small, little-known fertilizer company that is yet to start producing potash but shows a lot of promise is Western Potash Corp. Cekerevac believes that the preliminary feasibility studies to determine exactly how much potash the company is able to extract will reveal that the future looks quite bright. Western Potash estimates that the mine in Canada will produce an average of 2.8 million tons per year, with the estimated life of the mine being 40 years. Construction is to commence in 2013, with production to start in 2016. Western Potash also says that it is teaming up with a firm in Brazil to explore for potash in South America.
Cekerevac concludes, “As with any investment, the sentiment goes up and down all the time. Look to the long-term demographics that there are more people on Earth, the same amount of farmland, and higher incomes for people to buy more food. Fertilizer demand will continue to move up over the next decade.”
Published every business day, Penny Stock Detectives researches and analyzes low-priced opportunities in the stock market and individual stock market sectors. Penny Stock Detectives reports on penny stocks, small-cap stocks, micro-cap stocks, high-profit potential plays mostly under $10, and the stock market in general.
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The editors of Penny Stock Detectives believe that low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at http://www.pennystockdetectives.com.
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