ZFX - Zinifex Limited

[roland]

Re: Latest News Release from Zinifex

Zinifex CEO, Andrew Michelmore said: “Allegiance’s Directors are using smoke
and mirror tactics to present information in such a way as to make it difficult for
Allegiance shareholders to determine the true merits of the Zinifex Offer.”
“In the absence of any superior bid being made for their company, it would
appear that the Allegiance Directors are struggling to justify their claims that
Zinifex’s Offer is inadequate.”

Are the Zinifex management bordering on comments that could get them into legal trouble?

Personally, I would be happy if Zinifex stepped out of this - it's giving me a headache.

 

[adobee]

Perhaps all zinifex holders should buy Allegiance shares on market and sell and agree to sell to zinifex.. We would have to take a small loss however the loss would probably be minimal in relation to to the loss we have been taking on ZFX then once they have enough shares we hopefully reap the rewards in the ZFX share price..

 

[nioka]

Perhaps all zinifex holders should buy Allegiance shares on market and sell and agree to sell to zinifex.. We would have to take a small loss however the loss would probably be minimal in relation to to the loss we have been taking on ZFX then once they have enough shares we hopefully reap the rewards in the ZFX share price..

Perhaps the sensible ZFX holders are selling ZFX and buying AGM full stop. If I was a holder in ZFX I would be happy to trade them in for AGM shares.

 

[treefrog]

Perhaps the sensible ZFX holders are selling ZFX and buying AGM full stop. If I was a holder in ZFX I would be happy to trade them in for AGM shares.

sorry nioka, what earnings and divvy did you say AGM paid??

INCOME Company All Ords Sector
Dividend yield 10.8% 4.6% 3.5%
Franking 100.0%
Tax adjusted dividend yield 7.9% 3.2% 2.4%
Dividend stability 100.0%

 

[nioka]

sorry nioka, what earnings and divvy did you say AGM paid??

You make a valid point BUT for me the potential for overall returns is what I have used to make my investment decision, ZFX holders are proving me right by being so desperate to get AGM one way or another. For adobee to suggest it is worth trading it at a loss just to get it only proves my point wouldn't you say.

 

[treefrog]

You make a valid point BUT for me the potential for overall returns is what I have used to make my investment decision, ZFX holders are proving me right by being so desperate to get AGM one way or another. For adobee to suggest it is worth trading it at a loss just to get it only proves my point wouldn't you say.

possibly some are very keen but probably its more likely linked to their recent cap losses and wanting things to get back to "normal" whatever that is.
personally I like it when people think outside the square and it could be that a loss on such a deal would not be significant depending on the final wash and timing - eg ZFX offering more etc etc

 

[roland]

You make a valid point BUT for me the potential for overall returns is what I have used to make my investment decision, ZFX holders are proving me right by being so desperate to get AGM one way or another. For adobee to suggest it is worth trading it at a loss just to get it only proves my point wouldn't you say.

I beg to differ, it's not the Zinifex holders at all, that are "desperate" to get AGM, it's the management that see some value in AGM, personally I couldn't care less. What I do care about is that Zinifex increase their future prospects to maintain the excellent value that they have been to shareholders.

AGM is just a small part of the continuing process of diversifying their resource pool and I am sure that they will not pay more than what any resource is worth. If AGM doesn't pan out, then onto the next target.

 

[3MT]

Patience is a virtue they say, but I'm questioning the effectiveness of Zinifex's continual persuasion strategy. AGM is no doubt a great asset, largely due to its strategic location (Tasmania). AGM will not waiver unless they get a hefty premium to the current offer. period.

The more they waste time with all this useless mailouts and trivial annoucements/attacks on AGM's management, the more resistance they will get.

 

[jaffa]

My concern is that this thing with AGM has been dragging on for too long.

ZFX managment now look to be taking it personally - to the point where it might be an unhealthy distraction.

The need to nail it or forget it and get on with something else.

Just my view!!!

 

[Kruegs]

Hi, according to my broker's website, if ZFX continue to pay a 70c dividend each 6 months and at the current ZFX price of $10.48, then

Quote

Dividends Per Share 140.00c
Dividend Yield 13.36%
Gross Dividend Amount 200.00c
Current Dividend Amount 70.00c
Franked Percent 100.00%

With today's drop in share price for ZFX of almost another 5% for Zinifex to below $9.50, that dividend return is looking even more attractive.
Any thoughts on where the next level of support would be for Zinifex, or whether we'll see some buying on the run up to the Dividend record date?

It still surprises me that a company which is producing, has cashflow to return such a high dividend to shareholders should have more than 60% of its value wiped in less than 6 months (even with the declining Zinc price). Possibly oversold? Perhaps when the AGM business is resolved one way or the other, confidence will return to the stock?

Cheers,
Kruegs

 

[nioka]

Kruegs;
Have you looked at the potential earnings as per their announcement.
"Profit for the six months to Dec expected to be a total of $1,270 to $1320 million but only$250 to $275 million from CONTINUING operations." Second half looks bleak unless they are quick to get producing assets.

 

[shinobi346]

Even if they only made $250million in the second half, thats nothing to sneeze at. I think the market backs that up when it was a $17+ share company and making around that.

Anyway I'm confident the management of ZFX know what they're doing and will turn the money they've made from selling Nyrstar into making more money. Swallowing AGM and turning it into something that will benefit all ZFX holders is just one option they've taken. At the current offer ZFX will still have a sizeable warchest left for further aquisitions.

 

[banska bystrica]

Kruegs;
Have you looked at the potential earnings as per their announcement.
"Profit for the six months to Dec expected to be a total of $1,270 to $1320 million but only$250 to $275 million from CONTINUING operations."

$275M for one half will do me. That's a figure AGM would dream about. Anyway, today is the last chance to sell AGM for over a dollar.

 

[nioka]

$275M for one half will do me. That's a figure AGM would dream about. Anyway, today is the last chance to sell AGM for over a dollar.

Wrong on both counts. There may be some who will take the dollar or less but the long term holders are looking past twice that. AGM in preopen at one stage this morning. What is ZFX's next move. I hope it is move on.

 

[roland]

well, AGM are nearly at the $1.00 mark, fallen nearly 4% as I write. Interesting to see what happens if it does hit a dollar - should spook a few.

 

[nioka]

well, AGM are nearly at the $1.00 mark, fallen nearly 4% as I write. Interesting to see what happens if it does hit a dollar - should spook a few.

Exactly what ZFX are trying to do. They may even create a lemming rush but it isn't over till the fat lady sings. Wait for the next AGM announcement. Production?
It would have been a good day for AGM to call a trading halt. That is what I would have done.

 

[adobee]

Exactly what ZFX are trying to do. They may even create a lemming rush but it isn't over till the fat lady sings. Wait for the next AGM announcement. Production?
It would have been a good day for AGM to call a trading halt. That is what I would have done.

I dont understand why you bother to post in the ZFX thread, you obviously dont hold any. Why not post all this rubbish in the AGM thread..?

 

[DionM]

Well I've decided to sit tight on my AGM shares, for better or worse.

Still sitting tight on my ZFX ones, but for a different reason!

 

[nioka]

I dont understand why you bother to post in the ZFX thread, you obviously dont hold any. Why not post all this rubbish in the AGM thread..?

Firstly I like a challenge. Secondly ZFX holders can't expect to walk over AGM holders. It is they little boy standing up to the big bully. Thirdly ZFX holders post on the AGM thread. You dont have to read my posts. My aren't ZFX holders touchy.

 

[roland]

Well I've decided to sit tight on my AGM shares, for better or worse.

Still sitting tight on my ZFX ones, but for a different reason!

Hi DionM - I picked up some more ZFX yesterday on the dip, got my average down to a smidgen above $13. Still a little high, but will keep holding and averaging down on dips. Good luck with the AGM thing