Our New Epic Pick is UPCO (Universal Potash Corp)!
UPCO closed today at .13.
UPCO closed today at .13.
UPCO has certainly had a very strong week, quickly becoming one of the hottest plays on the OTC.
We have been watching UPCO's growing momentum this week, and today UPCO looks to have finally given way after running to .17, retracing back as low as .11 and closing at .13 - offering a very attractive entry price!
Why? Now that profit takers may be finished selling/flipping, UPCO, which is still very hot, could offer an excellent bounce opportunity and we will watch for a possible return to the .26 high in February! However, you MUST remember your trading rules and look out for any possibilities of further resistance or profit taking.
So what has the OTC market a frenzy for UPCO?
One word: Potash
Now you may be asking yourself, what the heck is Potash?
Potash is a key ingredient in fertilizers that enhances water retention of plants,increases crop yields and plants' disease resistance. In feed supplements, the key function of potash is to contribute to animal growth and milk production. Potash is also
used to produce glass, ceramics, soaps etc.
Potash has three main uses: fertilizer, livestock feed supplements and industrial processes. 95% of world's potash is used in fertilizers, while the rest is used for feed supplements and industrial production.
Mined from natural mineral deposits left by ancient evaporated seas, potash is primarily used as a crop nutrient. Its potassium strengthens plant stalks and roots and helps crops fight disease and injury. In addition to improving yields, potash adds flavor, color and texture to foods. Potash is also used to make industrial products ranging from soaps to computer monitors.
used to produce glass, ceramics, soaps etc.
Potash has three main uses: fertilizer, livestock feed supplements and industrial processes. 95% of world's potash is used in fertilizers, while the rest is used for feed supplements and industrial production.
Mined from natural mineral deposits left by ancient evaporated seas, potash is primarily used as a crop nutrient. Its potassium strengthens plant stalks and roots and helps crops fight disease and injury. In addition to improving yields, potash adds flavor, color and texture to foods. Potash is also used to make industrial products ranging from soaps to computer monitors.
Great, so why does it matter?
As you know, fertilizer is very important to our growing population as it allows farmers to produce more crops on less land due to the vital nutrients it provides the soil. In fact, without fertilizer, we would need 40% more farmland to sustain our population!
And believe it or not, Potash prices, along with everything else these days, have SKYROCKETED in the past 5 years!
Supply and Demand people. Yes this unassuming commodity had surely been getting a lot of exposure recently....
In fact, on March 22nd,Goldman Sachs upgraded their rating of Potash from "Neutral" to "BUY"."We favor potash among the three nutrients (nitrogen, potash and phosphate), given more robust demand prospects and a continued tight supply backdrop in the intermediate term," said Goldman Sachs in its statement. The stocks of potash producers are predicted to outshine those of more nitrogen focused companies, due to what brokerage firm Goldman Sachs calls "peaking corn prices."
In a statement issued this past Monday, Goldman Sachs noted that the current corn price of $6 to $7 per bushel is unsustainable. "Increasing global corn supplies, falling demand for feed and diminished political enthusiasm for ethanol in the U.S. will combine to lower corn prices by 2012," said Goldman. The price of nitrogen has a closer connection, compared to potash, to the price of corn; therefore, Goldman Sachs announced that it favored fertilizer producers tied to potash, rather than nitrogen.
Enter UPCO...
Universal Potash Corp. is a natural resource exploration and development company engaged in the exploration and development of properties that may contain minerals in the United States. The Company is following a business plan that calls for Company representatives to research, negotiate and obtain highly prospective uranium or potash properties, following which the Company intends to enter into Joint Venture agreements to see the properties developed at a minimal cash cost to the Company. Management efforts are channeled into building Universal Potash Corp. into an international enterprise and meeting the growing challenge of feeding the world.
On Feb. 17th,UPCO announced they have negotiated the acquisition to a majority interest in the potash rights to three square miles of prospective ground in the Paradox Basin of Utah.
The leased property is located less the 1,000 yards west of the Bureau of Land Management's designated KPLA (Known Potash Leasing Area) reserve.
KPLA ground is classified as having a strong likelihood to contain significant Potash resources based upon data available to the BLM provided by historic oil and gas drilling activities.
Adding to the land already acquired by UPCO, these leased properties are located immediately to the South and contiguous to the company's current Potash applications pending approval, covering a total of 29,000 acres.
Ready to Drill?
On March 8th, UPCO announced they will commence the permit process to drill in the Paradox Basin. Universal Potash Corp. has engaged Harrison Land Services, LLC of Moab, Utah to assist them in this process and represent UPCO at onsite inspections under this phase.
And just yesterday....
On March 28th, UPCO announced the immediate start-up of our Potash Exploration Program focused on our interests in the Paradox Basin of Utah. "Our timing couldn't be better. Financing is available in the markets and Universal Potash is positioned to take advantage of this timing with our proposed first 2 site development on the three square mile lease interests adjacent to Lisbon Valley, Utah,"
stated Kevin M. Murphy, CEO of Universal Potash Corp.
Harrison Land Services has been engaged by UPCO to carry out an extensive evaluation that will target the best drill sites and access to the 3 newly acquired Potash exploration lease blocks immediately west of Lisbon Valley anticline of the Paradox Basin. Analysis of our target drill sites will be based on a combination of criteria that will result in the least disturbance area to the environment by the drill pad locations, access to sites that best fit geologic favorability for Potash discovery and avoidance of cultural, paleo and biological resources.
We look forward to hearing more news with results of these drilling operations. Make sure UPCO is firmly on your radar tomorrow morning!"Acquire, Explore, Discover and Produce Potash is UPCO's simple road to success for our shareholders. There is no substitute for Potash and the benefits it brings to feeding the growing world's population. Regional calamities and world stife won't diminish the demand for our future products as food will always be in demand,"
stated Universal Potash CEO, Kevin M Murphy.
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