My first theme is agriculture... a twice-blessed group of stocks that benefit from a developing global famine, and our government's somewhat farcical commitment to using a fuel that takes too much energy to make, costs too much to transport, and is totally unwanted by everyone, except primary voters in Iowa!... 

Ethanol!...

Forget the fact that it's doing nothing to keep the price of gasoline down... 

This combination is sending ag commodity prices through the roof...   My prediction, in terms of the Sweet Sixteen?...

Corn... I think corn goes to $16...

I think wheat goes to $16...

I believe they're both headed to $16 a (bushel)...

The ag stocks worked in January and February... and, you know what?... That's it!  That's all you need to know!

And these stocks should keep working in March, thanks in no small part to our government's decision to crucify humanity on a cross of corn...   

Out of my Fab Five of Agriculture Stocks... Agrium (AGU), Deere (DE), Monsanto (MON), Mosaic (MOS) and Potash (POT)...  these are the best stocks in the group...  I think you now have got to switch gears...

I think you now want Potash (POT)... down $1.54 today, and almost $20 from its high...

It represents a better bargain here than MOS...  Still a fave, but not as good when it comes to the soaring commodity prices for fertilizer and for grains...

This baby's the largest producer, by capacity, of potash, nitrogen, and phosphate...  three essential ingredients in any good aromatic fertilizer... and you better believe farmers can't get enough of this stuff worldwide, with prices for wheat, corn, soybeans... you name it... going sky high and going higher.

Fertilizer prices are soaring... but it still makes sense for farmers to pay up, and increase their crop yields.  If you don't believe me, by the way, I want you to go to either the MOS or the POT websites...  Both of them have fantastic, fantastic descriptions on what's going on right now, in terms of why the farmers still need to pay up, and why it's worth it.  The Potash Site (PDF file with these pricing arguments will open in new window here) is really brilliant. The CEO's really smart...

The fertilizer industry, despite its smell, is a great business to be #1 in, because the barriers to entry are so high...  It costs at least $2.5 billion to build a greenfield mine, and start making potash.  And that excludes the skyrocketing costs of associated infrastructure around the plant...

Even better, it would take 5-7 years to bring a new mine to market, and anyone making that investment would have to wait a long time to even generate positive cash flow...  No one's going to get in it!  No one's coming in to compete...

High barriers to entry, the lowest cost producer, a seemingly-endless supply of products...  This is miraculous combination!...  You're not going to find it in tech or in drugs...  You're not going to find it in banks, you're not going to find it in defense...  You're not going to find it in homebuilding... 

And, it's especially sweet now that wheat is going to $16... my opinion...  and farmers need all the fertilizer they can get their hands on...