The Investment Doctor
Long/short equity, value, debt, base metals

Allana Potash: Why The Unique Characteristics Of This Project Make It Survive My Stress Test

(Editor's Note: Investors should be mindful of the risks of transacting in securities with limited liquidity, such as ALLRF. Allana Potash's Canadian listing AAA.TO offers more liquidity.)

Introduction

In this article I'll have a closer look at Allana Potash (OTCPK:ALLRF) which aims to develop its Dhanakil potash project in Ethiopia, Africa. As the potash price plunged since Uralkali blew up the potash-cartel, Allana's share price went into a free fall, dropping to just $0.31 for a market capitalization of $110M at this moment. As I doubt the potash price will remain at the current level, I'll be looking to determine the fair value of Allana at a slightly higher potash price as a base case scenario, but lower...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details