ZFX - Zinifex Limited

[Fab]

stoxclimber ,

That sounds pretty good for company such as ZFX then why is ZFX going down ? Profit taking ? Zinc price down ?
P/E ratio is back under 5 which is very very cheap

 

[stoxclimber]

IMO zfx is going down because a) the price of zinc is going down and b) ZFX's stock price increased excessively compared to the price of zinc/ZFX's profit (I said this before the correction either in this thread or the zinc thread).

That said I think it's a great buying opportunity and its just a question of timing your entry so you avoid being exposed to a further slide in zinc prices in the short term.

 

[Nick Radge]

The last two days has seen ZFX close on or near its lows. Volume has been very low which is a sign that buyers are not supporting the stock at these levels. It also means that the sellers seen back at $17'ish are not chasing it lower. However, should they decide they want out then there is going to be a swift move lower. Until buyers support the stock it will not be able to rise and even then, those sellers may not have been fulfilled yet.

 

[stoxclimber]

Zinc's down 1.68% in early LME trade. Good news for me, less good news for holders (although I have some zinc exposure in TRO)

 

[nizar]

Zinc's down 1.68% in early LME trade. Good news for me, less good news for holders (although I have some zinc exposure in TRO)

How is zinc down good news for you?
If you are shorting zinc metal i tell u what u are a brave man indeed...

 

[alankew]

Maybe a naive question but if these contracts are cancelled(presumably to buy at a lower price-would be nice if you could do that with shares!)doesnt it just mean that the buyers have to come back and buy at a later date which still end up with stocks being depleted

 

[stoxclimber]

How is zinc down good news for you?
If you are shorting zinc metal i tell u what u are a brave man indeed...

Because the ZFX price will hopefully thus keep falling as people get scared of declining zinc prices, meaning that I can snap it up even cheaper! I am short term bullish on zinc and want to get lots of exposure to zinc (sold old holding at 15.80 as I anticipated short term falls in ZFX) so the cheaper the better.

alankew - (as I understand it, which may be 10% wrong but is generally right) if the stocks are held "on warrant" it means that they are being stored in the warehouses. When they become "cancelled" it means someone has chosen to take delivery of them so in time they will be moved out of the warehouse..and they are not available for others to purchase.

Thus, if the cancellations slow up, then the drawdown of total inventories will slow up in the near future (e.g. yesterday only 350t). If the cancellations are strong, then the drawdown in the short future should be strong too.

 

[toothfairy]

Hi, I have been watching and trading ZFX shares for the last 6 months or so and been very happy with the result. I am new to this forum.

One common thing I am sure all of you zinophiles do is to watch the prices of zinc metal while it was traded in LME @ our night time.

After watching it for months and I am still quite confused as where to look and I hope some of you zinc / metal gurus can help me.

I do know the most common (free) place to check is the famous Kitco or Selftrade sites, but I gather they are not LME prices and can be quite different to the LME (or should I say the real) prices. For example, Kitco said this moring zinc was down 1.88% to USD 1.9724 per lb, but when I checked the Zinifex site it says up $95 to $4305 / tonne (which is over 2% up). There is nearly a 4% difference between the quotes, who to believe and who is more important?

There were numerous examples like this if anyone is interested in say comparing Kitco to LME. Does anyone know where to get free realtime LME quotes?

I should have posted this in the zinc prices thread but I am more attached to ZFX. (I know I know do not fall in love with a share). Thanks for reading and I hope someone will advise.

 

[Kipp]

stoxclimber ,

That sounds pretty good for company such as ZFX then why is ZFX going down ? Profit taking ? Zinc price down ?
P/E ratio is back under 5 which is very very cheap

PE under five? How did you arrive at that? I assume you are talking Forward P.E.- EPS was only $2.20 in 2005-6 (including 130 mill of derrefed tax credit from previous year). Which Pegs a PE of 7.

I'm waiting for ZFX to skip back to ~13.50 (highs in MAY, resistence again in October) before I buy in again... it might not fall back there- I'm just playing it safe.

 

[Fab]

Looks from the overnight Zinc LME that it will go back up today

 

[Halba]

kipp who values on historical p/es?????

 

[Fab]

PE under five? How did you arrive at that? I assume you are talking Forward P.E.- EPS was only $2.20 in 2005-6 (including 130 mill of derrefed tax credit from previous year). Which Pegs a PE of 7.

I'm waiting for ZFX to skip back to ~13.50 (highs in MAY, resistence again in October) before I buy in again... it might not fall back there- I'm just playing it safe.

I am getting that from Commsec

 

[YOUNG_TRADER]

I'm waiting for ZFX to skip back to ~13.50 (highs in MAY, resistence again in October) before I buy in again... it might not fall back there- I'm just playing it safe.

And thats the best way to ply the game Kipp!

If we wake up and there's a mkt correction most stocks will fall back to May high levels as support, if they don't and fall through thats very bad.

But IMO your doing the right thing, the constant sell down of ZFX suggests that Insto's and smart money have left it, $13.5 looks like a good entry.

Good luck

 

[Fab]

Interesting ZFX is following hard again today and TZN is going up. I am wondering where ZFX will stop. It should bouce back at some stage.

 

[Fab]

What a terrible week for ZFX. I hope it will go back up soon

 

[Sean K]

A bit of downward momentum there. Heading to $13.50 maybe, $12.00 possible. Back to long term trend around there I think.

 

[chops_a_must]

It seems to be way out of proportion to the factors that are causing it. With the earnings it's set to gain, it wont stay down for long. Well, it shouldn't anyway, but I'll be looking to get more when this negative sentiment ends.

 

[Fab]

I agree it looks like an exaggerated negative sentiment. I am hoping it will go back up very soon.

 

[pacer]

Sorry but I agree with Kennas....$1360 isn't that far away....reversed position on this one.....

 

[chops_a_must]

I tell you what, if it gets to 13.50, I'm going to want to be the first in there. Bargain.