Arianne Phosphate (TSXV: DAN) is on
sale for the next 10 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.
http://www.321gold.com/editorials/moriarty/moriarty012214.html
ARIANNE
PHOSPHATE INC
DAN-V $1.27 (Jan 21, 2014)
DRRSF OTCQX 85.1 million shares
Arianne Phosphate website
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