Agriculture Mania

Thanks goes to Travis.

I do not think we are in a general bubble yet though these multiples on the newest agriculture IPO are definitely bubble territory. Just ridiculous. Overall I think agg stocks need to take a breather. Either way there aren't any U.S. agg stocks that I have interest in. There is no margin of safety. You have to go overseas to find anything interesting.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aVQYQLMklZ4A

Intrepid Potash Inc.'s initial public offering may mark the start of a bubble among fertilizer stocks, which have soared during the past couple of years along with demand for all kinds of crops.

After surging 58 percent in its first day of trading, Intrepid -- the largest U.S. producer of potash, according to its IPO prospectus -- is valued at 201 times last year's pro-forma earnings of 25 cents a share.

This makes the Denver-based company's shares more costly than those of Cisco Systems Inc., the world's biggest maker of computer-networking equipment, when the Internet bubble reached its high point in March 2000. Cisco peaked at 193 times profit, according to data compiled by Bloomberg