If you thought maybe you had missed the potash boom, or if you had thought Potash Corp. was expensive at $180/share, it’s worth taking another look. According to research at Canaccord Adams, Potash Corporation of Saskatchewan is still well-set to yet again double its market cap! Keith Carpenter actually gives POT a 12- month target of $425/share.

It’s not that hard to imagine potash being worth as much as Google.

Saskatchewan is the world’s single biggest producer of potash, and the Potash Corporation of Saskatchewan is the single biggest producer in Saskatchewan.

Currently, POT is trading around $184, having come off quite nicely from its highs this year at $246. This could be a good buying opportunity if you like POT and have been watching it from the sidelines. It’s still a bit expensive for my tastes, but I do like that it pays a meagre dividend at 0.2%. That said, I will be watching it in case it comes down a bit further. I think $160 would be a nice price to buy in at, but I’m not sure we’ll see that.

Potash demand isn’t going to be decreasing, either. Just like oil, it’ll be back up with all the production and agriculture needs in China. For other ideas on investing in potash, read the article I wrote last month on junior Canadian potash plays. Also take a look at Raytec and Migao. And of course, subscribe to my free feed for all future updates and leave a comment below with your take on the potash industry.

There’s a new potash player on the scene. (The whole Canadian potash scene is starting to remind me of the old gold rush!)

Raytec Metals Corp. (TSXV: RAY) recently (back on July 15, 2008) received its first exploration permit on its potash claim in Saskatchewan (that’s where most of the world’s potash is), a province in central Canada. According to the Financial Post (Toronto), its shares jumped 21% on the news.

Raytec’s foundation looks good: they’re developing over 300,000 acres of potash claims (that’s a LOT of land!); these claims are directly adjacent to those owned by BHP Billiton (read: if this area was good enough for BHP, it will be good enough for Raytec too). Raytec also mines iron ore in the province of Ontario, Canada. They also have some uranium claims in Northern Saskatchewan and are clearly focused on providing for economic growth in Asia.

Back in July, Raytec said it was about to commence 2D and 3D seismic work on the claim before beginning phase two of their drilling operation. It has since also applied for an additional potash permit (July 17, 2008). Back then, (July 17, 2008), it was trading between 99 cents and $1.15 CAD.

So where is Raytec at today?

Today, it’s trading between $0.68 and $0.73 CAD, so there’s been a big correction. Much cheaper to buy now. And Raytec is still a very young company, having acquired these potash claims not quite so far back as February 2008. They officially became a tier-2 mining company in November, 2007, when they adopted the new Raytec Metals name. Even still, I think they’re worth considering. I might buy some, just to position myself well for any more potash growth. At this price the growth is more compelling. What about you, are you invested in any of these potash explorers? Do you have other thoughts on Raytec? I’d love to hear.

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?