The Hottest Potash Stock : Raytec Energy

 

 

Raytec Energy is the hottest stock in Canada right now based upon Potash exploration results. Check out the drastic (100%+) price increase & the insane volume increase (over 2500%) that has taken place over the past three days.

Halted on monday due to “pending news”, Raytec opened up to one of the biggest volume increases in recent memory.

 

The volume went from under 700,000 to over 18 million. And the volume increased yet again on tuesday to over 21 million shares.

Here is a one month price chart showcasing the price and volume increase.

The news that has cased the volume and price increase, taken directly from the Raytec homepage

Raytec has just released a NI43-101 report on the KP441 Potash claim which estimates a total indicated resource of 148.02 million metric tonnes grading 23.44% K2O (for a total of 34.7 million tonnes of K2O) and an additional inferred resource of 229.16 million metric tonnes grading 20.40% K2O (for a total of 46.76 million tonnes K2O).

Recoverable in-place potash equivalent tonnes, assuming using standard deductions and an overall recovery of 36 per cent (10-per-cent geologic anomaly and expected 40-per-cent extraction), are calculated to a net recoverable indicated resource of 12.49 million tonnes of K2O and a net recoverable inferred resource of 16.83 million tonnes of K2O.

Exploration permits on potash claims expected to be granted in July 2008.

 

On top of this I’ve even begun to receive some of those “spammy” e-mail messages pushing the stock. This morning for instance Cannacord research sent out a mailing pushing Raytec. Their take;

we’ve uncovered what we believe to be an undervalued company that announced yesterday a proven 43-101 compliant resource. The company is Raytec Metals (RAY). Our rough estimate of the in-situ value per tonne of potash is +/- $4.00 per tonne, based upon BHP’s takover offer of Anglo-Potash (AGP). The indicated resource of 34.70MMT could imply a target market capitalization of $138.8M or approximately $3.00 per share. If you add in the in-suti inferred resource of 46.76MMT, the target is obviously higher.

Going over the more established Canadian research notes I haven’t seen much coverage of Raytec. Once the bigger houses such as Bank of Montreal, TD and RBC Centura begin featuring Raytec in their morning notes (which are read by many US investors) I’d expect yet another spike in volume.

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