Encanto Potash Corp V.EPO.H

RE: My thoughts

[Ryty]

Well Said Alpha.  My only concern so far with this whole deal is the huge outstanding and fully diluted common shares in EPO.  I just don't think that we are going to see the pop in share price everyone thinks we are going to see.  That's why I bought a ton of shares.  But with such a huge float, fully diluted, my guess is that  if we have a sizable est. then we could see $1.50.  If we have something along the lines of WPX, I think we'll see a drop in the share price...which would not be good.  In fact we would have to see a est bigger than Pot 1. 

Anyhow I guess time will tell.  This is definately my biggest position. 

Also not sure if anyone read on teh EPO site regarding the old oil drill holes for the "Day Star" property.  That looks very promising as well.  Albit , not as much as Musk.   Hopefully we hear a news release that they are moving forward with discussion with FN to start drilling that property in 2011, which would be good for this share price. 

If mgmt only focuses on getting Musk to production, I think that would be a mistake.  They need to get the share price in the mid to high single digits and do a huge financing (or debt financing to prevent futher dilution to shareholders) and the only way to get the SP up is more drilling on additional properties to put them into the league of the big boys.  That's the only way we will see a share price over $10.00. 

Now I'm going back to smokin my crack pipe... : )