Monday, April 21, 2008

Intrepid Potash: The Hottest IPO of 2008 (IPI)

Update: more here.
What do you think, a double on the first trade? Where are the bucket shops of yore, where an honest working man could get some action via a prop. bet?

From 1440 Wall Street:

The most anticipated IPO of 2008 will be priced next week. Will aftermarket buyers of the stock have a shot at making a buck?

Fertilizer stocks are the hottest securities on Wall Street, and Intrepid Potash (IPI-NYSE) offers investors a pure play on the craze. But Goldman has the books, and even if you have been kissing their butt, chances are your allocation will be looking downright skimpy, if you are lucky to get one at all....

... There are only 20-25 commercial potash deposits in the world and 12 producers; Intrepid has long-lived reserves that should last +100 years, and there are no substitues for the product. This is a unique natural resource that cannot be compared to oil or gas.

Be sure to check out Renaissance Capital’s IPO Home and the Electronic Roadshow, which has the full video presentation (34 minutes long) institutional investors received form the CEO on the roadshow. A must see, even if you don’t plan to play...MORE
Renaissance Capital

From IBD via CNN Money:

Fertilizer Company Reaping Fruits Of Agriculture Boom


To go public in today's market, you need a name like Intrepid. But it's the other half of Intrepid Potash's title that will likely interest investors.

"The broader sector is very strong right now," said Morningstar analyst Ben Johnson. "The supply-demand fundamentals within the potash market in particular are especially tight."

Potash is a mineral used as fertilizer, and fertilizers have been hovering near the top of IBD's industry rankings for some time now. Shares of Potash Corp. of Saskatchewan (POT) have risen 500% since mid-2006.

The growing global hunger for food has boosted potash demand by 3.5% a year since 2000. Only a dozen countries produce 95% of the world's potash. Intrepid Potash is the leading producer in the U.S. and the only pure play in the Western Hemisphere.

This also makes Intrepid a pure commodity play whose fortunes depend on the industry's cycles. But Johnson doesn't see a slowdown coming....MORE