Stock Ideas 
Market Watch Why the Agriculture Boom Won't Go Bust
Market Watch Why the Agriculture Boom Won't Go Bust 
Market Watch
|
By Charles Delvalle Is there any doubt that there’s a speculative bubble in Chinese companies? With that in mind, reader John S asked: Alibaba, China's second-most popular Internet search engine behind Baidu (BIDU), is going public today on the Hong Kong stock exchange. The IPO is priced at $13.50, but shares are expected to hit the tape at almost twice that price. Charles, could this be true? Regards, John |
|
| More... |
Most Popular
Login Form
| Why the Agriculture Boom Won't Go Bust |
| Tuesday, 01 July 2008 | ||||||||
|
The global agriculture boom is still in its early stages. On the surface, the global population is growing at a seemingly small slow 1.1% per year. That works out to about 203,900 new mouths to feed each day. Over the past 50 years, that’s been sustainable growth. There has been enough food, water and shelter for almost everyone. That’s all changing.  As you can see in the chart above, the amount of arable farmland available per capita is falling. Arable land per capita has fallen 37% in 50 years. Farmland will have to produce more and more. After all, though food demand is rising, they’re not making any more farmland. The world population is continuing to grow, and we need more food. Every acre of farmland will need to produce as much as it can. The only near-term solution is more fertilizer. That’s why the smart money has been buying up fertilizer stocks.
Regrettably, all the easy money has been made in fertilizer stocks. Now, it’s time for the big money to be made. The next generation of fertilizer companies is just getting started. And you know what? They need a lot of money to get the ball rolling. Learn how to invest in the early stages of small companies long before they’re household names here. The rewards can be incredible. In the case of fertilizer, the cause of demand isn’t going away anytime soon. Good investing, Andrew Mickey Editor, Fear & Greed
|
||||||||
| < Prev | Next > |
|---|
