Topic: How To Invest

Hi Pat: I have owned Potash One stocks for two years. What do you think of their future and whether to hold or sell their shares after the recent spike in the stock price? An added note: I sure wish I had taken your advice to buy Canadian Pacific Railway shares.

Article Excerpt

Potash One Inc., $2.80, symbol KCL on Toronto (Shares outstanding: 73.9 million; Market cap: $206.8 million), is focused on starting production at its Legacy potash project. Legacy is located 80 kilometres northwest of Regina. Potash One has just updated its estimate of the potash resource at Legacy. It now estimates that the deposit holds as much as 1.1 billion tonnes of potash. The company plans to conduct a prefeasibility study to determine if it should proceed with a full feasibility study. That study would determine whether it would be profitable to build a mine on the site, and would likely be finished in late 2010. The Legacy project is located next to Mosaic Co.’s (symbol MOS on New York) Belle Plaine potash-solution mine, the largest “solution mine” in the world. Like Mosaic, Potash One plans to use solution mining to extract potash from Legacy. This process involves the use of water to dissolve a mineral (potash, in this case) into…