Another piece of the puzzle ...I think this confirms what stock he is refering to as his "2016 Story Stock" I posted earlier.
from March 2015 ...
Sunday evening March 29, 2015 The second regular issue of The National Investor for March may not be out until tomorrow or Tuesday. Among other things, I want to report in it on the fullyear 2014 results for Claude Resources those will be released before the market opens tomorrow.
Additionally, there's one new recommendation I'm on the edge of releasing that I need to button up some facts on tomorrow before I do (or don't.) As always, though, if something is truly timesensitive, I always let you know no matter the publication schedule. And right now, I feel compelled to write to you separately about Encanto Potash (TSXVEPO OTCENCTF.)
From time to time you've heard me quote the "Buy right and sit tight" mantra of Frank Giustra, the legendary Canadian resource investor, founder of Lions Gate Entertainment, philanthropist. . .and shareholder of Encanto. He and other key players in management together with some serious money from Kuwait have kept the company afloat awaiting the day when Encanto's HUGE 60,000 acre plus Muskowekwan Potash Project would be developed. Even before Friday's news that Encanto had received an expression of interest from an infrastructure/investment firm to take the lead in building the energy infrastructure needed to develop the project, the longlethargic and pitifully cheap shares of Encanto were beginning to show some life. But and there is no guarantee this is going to happen the real moon shot could come in just a few weeks' time. Ottawa announced on Wednesday that Prime Minister Stephen Harper will host Indian Prime Minister Narendra Modi in Canada from April 1416. Encanto's management has long been working on an arrangement whereby (preferably) one major customer would emerge for its potash project (though it has other prospects, Muskowekwan is by far the most advanced.) And India has been at the top of the list of potential financers/customers. On the Indian government's own web site (thanks to my friends at Vanguard Shareholder Solutions for pointing out the link to this information!) it lists three major "advanced stage" negotiations in the works involving potential longterm fertilizerrelated deals. You'll see Encanto in the third.
As I was talking with my friend Martin Gagel at Vanguard late this past week, there are hopes and, again, nothing has been announced that during Modi's visit to Canada, he and Harper will announce that an "offtake" or some similar major agreement between India and Encanto (and perhaps others) has been inked. If that happens, you'll probably be sorry if you haven't taken advantage of the recent doldrums to buy more of EPO. Martin and I also discussed the downside what if Harper and Modi do not announce a deal involving Encanto right now? The first thing that would probably happen is that those piling into the shares nowand almost certainly in the coming days prior to Modi's visitmight sell, pounding EPO shares right back into the basement. Importantly, that wouldn't mean that all hope is lost. Longterm, a global population of 7 billion and growing needs to eat. In order to feed us all, crops need fertilizer. It's a basic enough need. And with already such massive proven reserves, someone will come along at some point to be a major customer(s) for Encanto.
Together with the fact that management has a LOT of skin in the game and is unlikely to go anywhere (and likely to keep things moving forward, even if still out of their own pockets to a great extent) the longterm risk hasn't changed.
My advice right now is that if you don't already have a decent position in Encanto, don't wait. It remains a speculative "BUY," which I am here and now reiterating. You're STILL buying Encanto "right" at Friday's close near C10 cents...at C15 or 20 cents...or even at the recent C5 6 cents. What has changed here is that a significant news event may no longer be months or years away, but MAYBE only a couple weeks. All the better!