Control of Brazil's Fertilizer marketIt's quite interesting that many believe the selling was due to negative news. Quite the contrary, this news was very positive. It is, however, an opportune time to book some profits if you're a long. I can say that I have been hanging around here for a couple of years, and been selling bits into the recent rise (and today's decline) knowing full well I can buy back a bigger position or simply ride my remaining AMZ float off my own dime. Other sellers are likely those who bought in in this highs selling on panic - effectively booking their losses - because they were simply momentum traders who have little to know understanding of what this company, and their revolutionary product means for the breadbasket of the world - Brazil - and hence the soon-to-be-coming bidding war by the major Fert producers which will be driven not just by the need to grow profits, but to ensure their traditional products survive in one of the world’s largest Fertilizer marketplaces. Which leads me to my inference on why the blended product would be so valuable at this time ahead of the stand-alone product. In a nutshell, (and beyond the obvious benefit of easily and rapidly being able to convert the farmers application to this blend, providing higher margins for the blenders, and inclusion of the current NP producers) it forces the hands of companies such as Vale, and BHP, and POT, Agrium, Mosaic, and the Russians, and possibly Rio, et al to cooperate with AMZ's ThermoPotash product as partners - and eventual owners of AMZ - by making the product so effective, cost efficient, and available to the ultimate value drivers: The end user farmer in Brazil. Eloquent, and brilliant.
The question over the coming weeks and months will likely be, who wants to control the Brazilian fertilizer market?