Fear

Starting a Position in Intrepid Potash

Your analysis was excellant. Plus not to mention they are hiring more people. In an article I had read they were looking to employ 100 new people at there carlsbad mine. This stock looks like a winner for the next 5 years. If you noticed there P/E really isn't correct as posted on yahoo IPI front page. You can really only count the 0.27 cents from there first earnings. if the 2.24 you mentioned were to be an accurate discription. Divide the price today of 48.65 by 2.24 and you get a P/E of 21.72. Because they just listed and are a new company by there website. Take a selling price of IPI at 90.00 and divide it buy 2.24 you get a p/e of 40.12 that is a little less than POT and a little less than MOS if I remember correct. But with the summer comming and solar evaporation at it's highest and your spot of 1000. pnt. you can see min this company will be is 90 dollars by mid summer or after 2nd quarter earning report. Now with your figure of 70 cents per 100 and the first quarter earnings. 357 + 397 + 417 = 1171 divided by 3 months = 390 average. Now the next 3 months 503 + 532 + 582 = 1617 divided by the 3 months = 539 average. Now substract $390. - $539. = $149 increase quarter over quarter your .70 cents per 100 = .70 cents now 49 = .35 cents add .70 + .35 = 1.05. take 1.05 + .27 =1.32 for 6 months now without any price increase rest of year it looks conservatively 1.32 + 1.32 = 2.64 divided it into the price of IPI today 48.65 divided by 2.64 = a P/E of 18. Take a selling price of $110.00 dollars divided by 2.64 = 37 p/e. My point IPI is undervalued by at least 150% by years end IPI should be min $150.00 a share and max of $185.00 a share