Last year was a big year for IPO’s, but it’s been a slow start this year with the market languishing.  Outside of the Visa (V) IPO, there has been little for traders to get excited about.  That is until today when the largest producer of potash, Intrepid Potash (IPI) began trading and soaring more than 50%.

According to MSN, the mining company produces two potassium-containing minerals, potash and langbeinite, that are essential nutrients in plant and crop fertilizer. Intrepid culls these minerals from five mines in New Mexico and Utah, where it also operates production facilities. Potash accounts for 90% of its sales. The company sells primarily within the US to the agricultural, industrial, and feed markets; PotashCorp sells Intrepid’s potash internationally. It supplies nearly 10% of US potash consumption annually and is the country’s largest producer of the stuff. (The US imports the great majority of the potash it uses.)

As far as the fundamentals, they look solid but nothing extraordinary.  My take on this is that this IPO comes at a time when the agriculture stocks appear to be near a major top with perhaps one more last climax run left in them.  Does this IPO signal the top?  Just maybe.  Like all IPO’s I’ll let it trade for at least two weeks and only enter on a breakout from a bullish pattern. 

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Today, the largest potash producer in the US began trading.  Tomorrow, one of the largest US water utility holding company will begin trading – American Water Works (AWK), a subsidiary of German utility giant RWE.

According to MSN, it’s one of the largest water utility holding companies in the US. Through its regulated utilities and its contract services division, American Water Works serves more 16.2 million consumers in 32 US states, Canada, and Puerto Rico. The company also provides wastewater treatment in some of its service areas. Nonregulated subsidiary American Water Works Service provides contract management services for water and wastewater systems.

This company has one thing going for it.. ok two things.  It’s big and it’s a water play.  I’ve been big on the water play for a couple years now and still think you’ll see meteoric rises in water stocks at some point, but this utility lacks greats fundamentals.

Here are some previous articles I wrote relating to water:

Thirsty For Profits? Go Get Some Water – Powershares Water Resources ETF (PHO) (2006)
Legendary Oil Investor T. Boone Pickens Thirsty for Water Rights (Jan 2007)