10-Day Food Sale on Now
Arianne Phosphate (DAN-V) is on sale for the next ten days. This after Xmas sale came up because the company has 4 million warrants expiring on February 1 at $1.24. The 4 million warrants have been extended twice and the price lowered and I don’t think they can extend them again. The company was as high as $1.69 four months ago and it was a steal then.
I read a great book over the holidays titled, “Life after Growth.” Author Tim Morgan makes the very valid point that the financial system and real economy should be connected but have parted ways as the financial system exploded with financial promises the real world economy cannot possibly meet. He points out that the wealth of the world today exists because of cheap energy. When cheap energy no longer exists, the wealth disappears and our standard of living declines. We need to adapt to a lower growth future now.
It’s an eye opening book because Morgan makes a real point that debt is an advance claim on food and energy. Food and energy are analogs. Food is energy and energy is food. There will be less in the future and they will cost a lot more money. The one issue pretty much everyone agrees on is that there is far more debt in the world than can ever be repaid. It’s interesting that governments around the world entertain the interesting theory that they can borrow their way to prosperity. That’s going to blow up soon as reality bites into our fantasies.
Food is going to go into shortage. In the next 5-10 years, arable land, water, food and energy will all be in shortage. One solution to a shortage of food is to add fertilizers to make growing food more productive.
I’ve written about Arianne Phosphate several times, in September and in October. In October the company released their Bankable Feasibility Study showing a NPV of $21 per share. That goes beyond stupid. The shares are selling for $1.30 and that’s about 6% of NPV. The resource drought has ended and resource shares have gone up 50% since the first of the year. The only thing holding DAN back is the overhang of 4 million shares. When we pass February 1st, the overhang is gone and it would be perfectly natural for the shares to roar higher.
Arianne is a takeover target. Typically with phosphate companies, takeover offers are in the .35% to .5% range. That means $7 to $10.50 a share. You don’t get this kind of opportunity often. It may be on sale now but it won’t be for long.
Arianne is an advertiser and I am biased. Do your own due diligence.
ARIANNE PHOSPHATE INC