Re:Re:Re:Re:Top 10 reasons funds might be selling KRN!
We will see when the financials come out. Unfortunately I am not psychic. Perhaps you are correct and spending is not too bad, however I have learned never to underestimate the ability of a company to burn through cash. Rarely is it treated as their own, and since the share price of this company is supported by this cash the financials will be extremely important to further price action and it seems no one has been focussing on this potential risk. In addition not everyone is predicting lower gas prices, and even if they were, analysts predictions are a great way to go broke. They did such a good job in predicting the potash market. However you must admit falling potash prices, and rising gas prices are a double whammy for KRN. In addition the higher capex I stated is only a 10% increase which is likely too conservative due to the Canadian dollars fall, and the time lapse and inflation in mine building since then. As for a market correction that would cause mine building to be cheaper once again, that is a macro risk, and if that happens mine costs will be the least of their worries. If there really is a deep correction coming, then hunker down for the long haul. Likely this mine isn't getting built or funded in a major downturn so lower costs won't matter. Remember, this thing is struggling in a good market. It essentially makes the rest of the discussion irrelevant. Never mind the potash market is currently in oversupply and the large players have a vested interest in keeping the price lower for an extended period to keep out new entrants. None of the stated risks have occurred or been exposed yet, that is why they are called risks. However if the 10 reasons I have stated all have no merit, can you please explain the fund selling and complete lack of insider buying. I know the CEO has lots of shares, but what about everyone else, and with the big salaries, why not buy some more if everything is such a sure thing. If I worked in a company that crashed like this one and I believed in it and knew everything was fine I would be buying with both hands, wouldn't you. Who knows what happens, but you must admit, something just doesn't feel right here. All just my opinion, do your own due diligence.