Thursday, October 1, 2009

Athabasca Potash Infighting: Troubles Ahead

We first reported on Athabasca Potash in January 2008 (IPO a $4.25), then in July 2009 (price $5.25). The current price is $5.97.

The stock has held considerably well in face of the market turmoil:

However the company is going through some upheaval. The CEO and Board were replaced 2 month ago, but have just been outsted (Reuters): "Reuters reported that Athabasca Potash Inc.'s Chief Executive Officer Robert Boyd resigned. "

The old board is now back.

It would seem to me that this company clearly wants to put iself for sale. There is no money to build a mine, credit markets are virtually shut down. Trouble is, potash prices are not heading higher in spite of all production cuts by POT, see The Potash Wars. They have good resources, but timing is awful. Maybe a Chinese company can buy them

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