- Global Potash Demand will Exceed Supply in 2017 and Potash is just starting a new bull cycle. IPI is just coming out of a turnaround period They have restructured and refocussed to benefit from higher margins and penetrating new markets. Hypotheis: Rampant price rises in Potash as demand continues to increase and a doubling of the price of Potash in the short term and 5 x + increase in next 5 yrs.
Potash Price is currenty finishing its bottoming process around 200 a T, far off from the previous highs of 1000+ T last cycle. I would expect the underlying fundamentals of a excessive demand globally to benefit IPI bottom line and its valuation.
Technicals : I believe IPI to be setting up for a breakout move, as we will also see a transition to commodity sectors starting any day, so IPI should benefit as well from that exposure.
The chart is signaling a breakout over the 2.60 and 3 level to come in the short term, with 9% short interest I believe a 3 dollar break could send this over 100-200% rather quickly.
This is my first Idea I posted here, Its all my opinion and you should do your own research, none of this should be construed as investment advice. I am currently long in IPI or will be very soon , and my position might change at any time.
Komen
jermss
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I like IPI as well. I'm solely looking at it it from a technical standpoint so don't know much about the recent news, but The chart looks nice and I agree with your analysis. Lets get this!!
jermss
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just realized this post was from May. Hope you got in on the trade, congrats if you did. I am still bullish.
InvisbleHand
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@jermss, IPI hit a high of near 4.70 up over 230%+ on swing alert. Always a good idea when you take profits to hold some shares as profit for a longer term appreciation if u like the companies growth perspective over a longer horizon.
InvisbleHand
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IPI hit a high of near 4.70 up over 230%+ on swing alert. Always a good idea when you take profits to hold some shares as profit for a longer term appreciation if u like the companies growth perspective over a longer horizon.