Wednesday, February 17, 2010

Fertilizer Penny Stocks COIN, TSE:WPX, CVE:ICP

The world demand for agricultural products is increasing dramatically and many experts predict this trend to continue as more people in third world countries begin moving out of poverty into the middle class life style putting pressure on agricultural crops. It takes around 16 pounds of crops to produce one pound of protein. This is important as emerging markets begin consuming more protein. Below are three penny stocks with business segments in agricultural fertilizers. These stocks have the potential to provide impressive returns but  come with risks.

For more penny stock reports or websites click on the links provided by Google at the top or on the right of this blog.
Potash Prices

Converted Organics Inc. (NASDAQ: COIN)
Current price: 0.92
52 week range: 0.57-2.81

Converted Organics uses waste products to make natural fertilizers. The company is very focused on being environmentally friendly. Converted Organics sells its fertilizers in retail, professional turf management and agribusiness markets.

In recent studies it has been determined that using COIN’s fertilizer increased crop value by 11-16% because of the natural disease suppression characteristics of the fertilizer. Their liquid fertilizer is also very effective in eliminating leaf mildew and funguses. One benefit of using their fertilizer over nitrogen is after many uses of nitrogen the soil loses its ability to absorb the nitrogen and other nutrients. By using Converted fertilizer these lost nutrients are replenished without creating hazardous run off into streams and rivers.

What I don’t like about the company is they are losing money and it has difficult to determine how long until the company becomes profitable. With such a small market cap if the company is losing money it raises the risk factor.

Western Potash (TSE:WPX)
The company’s stock is traded under the following
Toronto Stock Exchange (TSE): Under trading symbol “WPX”
Frankfurt Stock Exchange (FSE): Under trading symbol “AHE”
Current price: 0.47
52 week range: 0.22-0.84

Western Potash is a potash fertilizer exploration company currently pursuing an attractive potash mine in Regina near one of the largest potash mines in the world. The mine is in the beginning stages of exploration as tests are still being conducted to determine the economic feasibility of the project.

Western Potash states that potash is more profitable then nitrogen fertilizer and believes with their current mining exploration they will be well positioned to benefit from the raising world population and the increase in demand for fertilizers.

Intercontinental Potash Corp (TSX-V: ICP), (CVE:ICP)
Current price: 0.34
52 week range: 0.31-0.76

Start up potash penny stock company developing a mine in New Mexico with an estimate IRR of the project being 43% and a net present value of $2.9 Billion. The company anticipates potential production in 2013 as their current project is still in its beginning stages.

Intercontinental is similar to Western Potash as they have yet to begin exploration production. Both companies are operating on equity and liability capital and are not generating revenue to reinvest in their operations. If either company runs out of capital before they begin generating revenue they will most likely go bankrupt if they are unable to raise more capital.

Intercontinental differs from Western Potash in the type of potash they are mining. Their potash is higher quality and gets a premium price over traditional potash. This is because the potash has a 25% premium of minerals and has a different market for crops such as tobacco and fruits. Because they are pursuing premium potash, they should have a higher return on their investment and operate at higher margins in the future. I also feel they will attract more investors and have a better chance of success.

To receive email updates subscribe to stocklook's Google group. No more than two email updates a week.

Follow Us on Twitter


  1. Nice blog tips.I really like to read this.

  2. Very informative blog,lots of great info
    Thanks so much,will be back soon...

    Penny Stocks

  3. I must say this is a great article i enjoyed reading it keep the good work.

    Penny Stocks

  4. First of all,what's a penny stock? How do I invest with this and what's the system? I need to know the work around first before I hit the red button.This is really interesting. I'll be checking back later tonight.

    penny stocks

  5. Its a great post ..i m impressed by your writing style..keep the good working.

  6. Very interesting blog.It gives more information.

  7. Really very nice topic.Thanks for sharing.