So according to Bloomberg news, the provinces affected by the quake account for more than 10% of China's total production of refined zinc, and it may take at least three months to restart output. Also the quake may have caused over half million tons of zinc smelting capacity in the directly affected area to be disrupted.
Half a million tonnes out of production.
Smaller mines might not be reopen.
Unsettled strike deal.
This could only mean the zinc price will go higher with lower supply.
On the other side of this, my heart goes to the family of the ppl in Sze Chuan for the tragedy and ppl in Namimbia their hardship during the strike.
Zinc metal price is below $1/lb however ZINC stock is going up.
Could this is due to the fact most of their inventory have been hedge up front?
Or maybe since a lot of companies now going green, and this company is recycling the zinc metal instead of mining it?
Or it just a market apprehension of the coming up qtr announcement?
Or all the above & some?
I don't know what not to like about this company since they restructure their business.
Here are a few key points to me:
1. It's profitable
2. The net profit increase year after year
3. The management is doing various hedging to protect itself from lower price
4. It's pretty much debt free
5. With P/E close to 4, it's relatively cheap
Now I know that the demand on Zinc is currently low since 2004, but even with this low demand the company is able to generate profit. When the demand on Zinc goes up who doesn't think this baby will not sky rocket?
I don't know about you, but I'm buying.
Yea especially with the Vanguard fund buying good amount.
They're known to be a good fund management co.
Don't worry if you are playing for keep. It'll coming back.
The whole market in general going south.
This is a great stock, company is doing well, they're hedging pretty well too for this year.
Now, if you playing short term, I have nothing to say there.
Did anyone see the comment by the President of LMC at CNBC?
He thinks that the Zinc price is beaten down so much and the Wall Street analyst got it all wrong.
There are much more demand especially from the emerging market.
With this kinda price I think it'll bounce back up. I think we are looking at some of it now.
I know that they're hedging their Zinc price at $1/lb.
So anything above that should be good.
This is a company with no long term debt.
I think most ppl whose in the market are not putting their mortgage payments to play. That would be dumb.
I do think though that economy as a whole is turning south, which cause the company lower their earning estimates and slower grow outlook. Which in turn making investors dumping the stocks, and choose something more secure investment such as bond, etc.
I think DOW is too high as it is. It's probably brake 12000 by early next week. It might seek bottom near 11000.
Disclosure: I'm not a market analyst or anywhere near it. It just my personal opinion.
How many people have bought a stock thinking there would be a big upside earnings surprise, which actually happens, but the stock price goes down on the news. Here is another, someone buys a stock thinking the company is ripe for a buyout, and it happens, but the buyout is for less than the current stock price.
Ain't that the truth.
So how one should play this market then?
Just based on fundamental & ignore all the news, charts & signals?
Is this mean Fed are not going to have add'l cut?
Did they really panic?
I don't pretend I understand the way market behaves.
But I think I know that fundamental doesn't support it.
Even the DOW components doesn't supports that.
I'm going to see how long this rally will last.
I guess I just don't have a strong stomach to watch the live charts now. I don't know the rest of you, but I can see an almost perfect W on it, which mean buying trend.
With this tugging war, I think I better just put a limit order, close the screen and see at the end of the day.