Agricultural Crops Reaching New Highs
wheat, corn or soybeans? Those products, and many other agricultural crops, are reaching new highs. This is good news for Flexible Solutions (FSI – $1.40) which sells X10D, a fertilizer additive that delivers healthier, stronger plants with higher yields.Have you recently checked prices for
Businessweek had a very interesting article in its latest edition about rising prices for agricultural products. The reasons for this phenomena are well known:
- More people on the planet means more hungry stomachs to fill,
- According to U.S. Department of Agriculture (USDA), this year more than 35% of all corn production in the United States will be used to make Ethanol, and
- Adverse weather in several parts of the world, led to a drop in production.
X10D increases crop yields by protecting the phosphorus fertilizer to which X10D is added. Phosphorous has a negative charge while calcium, magnesium, iron and aluminum (elements that are found in soil) all have positive charges.
When phosphorous fertilizer, without X10D, is applied in soils or water, most of the negatively charged phosphorus attaches to the positively charged calcium, iron or aluminum, preventing the absorption of the fertilizer by the crop. As a result, the efficiency of the applied fertilizer reduces dramatically.
X10D however, has a large negative charge. When it’s added to the fertilizer and applied in soils or water, many positively charged calcium, iron or aluminum elements attach themselves to the X10D, thereby leaving the phosphorus free to be taken up by the plant.
X10D has been researched across North America since 1996 and has proven to increase yields on over 50 crops. It’s also important to know that the product has patent protection and competition is limited.
Fourth Quarter Revenues
On Thursday, Flexible Solutions announced revenues for the fourth quarter and fiscal year 2010, ending December 31, 2010.
Three Months Ended December 31
Twelve Months Ended December 31
|Amounts in $000’s|| |
Revenue data for the quarters and twelve months ending December 31, 2010 and December 31, 2009. Source: Company Press Release
The Company commented that it anticipates full year 2011 revenues to be higher than 2010.
Because of high agricultural prices, the farmer has more money to spend on additives like X10D. So, we expect Flexible Solutions’ sales to the $2 billion agricultural market to increase for 2011.
Additionally, the Company has several blue sky opportunities in the detergent and Watersvr markets.
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