open letter to management, page-39

Perhaps the fed permits will boost the share price - I honestly don't know exactly how the market would respond to the company being granted the fed permits (assuming that they are successful in obtaining the fed permits).

But my gut feeling is that the share price will not be boosted substantially by the fed permits without drill results confirming the thickest, highest grade regions - but again it is just my gut feeling - I could indeed be very wrong and look like quite a fool in a few months time if the share price rises significantly in response to the company obtaining the fed permits.

What worries me is the downward trend in the share price since it peaked at over $1.30 in October. I bought shares thinking that the results of POK State Hole 3 would be good enough to push the share price higher. And the results from POK State Hole 3 were reasonably good - but obviously the market was expecting better. To me, the market seemed to react very negatively to news that was, IMHO, reasonably good. Therefore, I feel that the fed permits on their own may not be enough to push the share price higher.

If the share price is boosted by the fed permits - then I tend to agree with the point that you make - even if it pushes the share price up initially, in the absence of other good news my feeling is that the share price would probably come back down again.

If you think that the fed permits will be granted very soon and that this would have a sustained positive effect on the share price - then yes, now would be a good time to buy/accumulate shares. But my feeling is that these shares will probably continue the downward trend and that there will be better buying opportunities later on. I will be watching out for updates from this company, and if the shares get cheap enough I would have to seriously look at buying shares again. But for the moment, i'm out.

I still think that the fundamentals are good - oil/gas wells have already told us that the potash is there - it seems to me to be unlikely that the results from all of the historical oil/gas wells were incorrect. IMHO, long term, the share price will go up, but short term, i'm not so sure.


The above are only my opinions - and could easily be wrong. Do your own research!