Migao Corporation: A China and Potash Play All-in-One
China, agriculture, commodities July 31st, 2008
I’d forgotten about the Migao Corporation (TSX: MGO) several posts back when I wrote about junior Canadian potash plays (see related posts, below).
Migao was once (prior to 2006) a private, wholly-Chinese owned company, but then became a Canadian, China-based company traded on the Toronto Stock Exchange in May 2006. It has offices in Toronto and Beijing.
If you want to capitalize on China’s need for potash, I don’t think you can get much closer than Migao, which specializes in processing potash, turning it into fertilizer and selling it directly to the Chinese market.
Recently, (May 2008), Migao raised the prices of its fertilizer and also received a patent on their production process. MGO is still a bit pricey (PE at 23), but has significantly pulled back from its 52-week high around $12 CAD. Their earnings are right now around 34 cents/share.
I’ll be watching this one and picking it up when I get a chance. How does it look to you?
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6 Comments to “Migao Corporation: A China and Potash Play All-in-One”
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One of my favourite stocks is likeable POT. I do not own at the moment but made me good money over the last year.
One of my favourite stocks is likeable POT. I do not own at the moment but made me good money over the last year.
Congrats on being able to get into the POT rally… unfortunately it totally passed me by until it became too expensive for my liking. But there are other choices for potash.
Great idea. You really got a good pulse on investing and benefiting from the growth of China.
Thanks for the tip.
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