This has certainly been a viscous sell off in STB.It's important...

This has certainly been a viscous sell off in STB.
It's important to note though that STB's sell off is not unique in the potash jr. sector. The whole potash jr. sector has been hammered. STB more than most but this is most likely due to the D and D article. At about $4 during the run up, D and D released their article which I believe was the catalyst for the run to $6. Therefore, a very strong and unusual run to $6 which translates to a very strong decline in a weak market.

Potash Jr. High and Lows during the last year:

PPI- $1.86 to $0.165
EPO- $0.65 to $0.135
MFM- $0.48 to $0.11
ICP- $1.89 to $0.74
AAA- $2.43 to $0.67

etc. etc.

Typically, in these types of sell offs, the stocks will sell off to a technical point of resistance, which relates to a point where the stocks initially began their parabolic moves.

Also, keep an eye on the potash ETF, SOIL, which also had a significant correction from $16 to $11.

I do not believe that this sell off in STB relates to the recent country/regional risk issues. For example Nevsun Mines in Eritrea has been trading in an approximate $5 to $7 range during the last year. Nevsun does not seem to be affected by these recent issues.

I believe that there are two main reasons for the sell off; the first being a normal and strong correction in the resource/mining junior sector; plus the European debt crisis, which will have a very negative impact on the funding of resource/mining juniors. This will especially affect the potash juniors due to the very large capex's that are required.

Anyways, on a positive note most of the potash juniors seem to have hit strong technical points of resistance and are rebounding off the lows.

GLTA,

Sam