ZFX - Zinifex Limited

[Julia]

I am continuing to hold. This is because ZFX is a major zinc mining house, has a lot of cash. Expect some deal flow. Cash means it can buy businesses to add to growth long term. This is stuck in my super fund, never selling it.

NEVER selling it?????

 

[misterS]

Halba - 8 years of Century output is still a few quid, and obviously you consider Zfx should be able to crank up something else with the billions of dollars it will reap in the meantime.

Well, would reap, if they weren't going to be swallowed by Teck at the end of this year - according to my prescient previous post (don't you love alliteration?) and they Teck can do something with the cash instead.

Julia - don't try and make people change their mind and sell with their own post - it's cruel.

 

[vishalt]

Would be awesome if Teck Cominco launched a hostile takeover hey?

 

[michael_selway]

Would be awesome if Teck Cominco launched a hostile takeover hey?

If so it will be $20 per share min imo

thx

MS

 

[Halba]

NEVER selling it?????

Held since about April 2006. Still have held.

 

[nizar]

NEVER selling it?????

Agree.
As they say you cant eat paper.

 

[Halba]

hehehe its a solid investment. I have a few thousand of these, I don't think there's much case for selling as you need diversity. Its got a good ff divvy yield so I will keep them. Zinc can come back and it'll do better. You never know. Don't count metals out. Uranium isn't the only commodity in demand. It made a billion bucks at lower zinc prices so not much downside from these levels.

 

[misterS]

Halba - bought mine in April 2006 too, so happy to hold as well, but admit the $18-$19 in Dec would have tempted me then if my 12 months for CGT had been up.:sleeping:

The smelter cash and final ff divvie are satisfactory compensation in the meantime, while we wait to see if the sp returns to $18 territory.

Even if Teck doesn't snatch zfx, with a premium, the post-smelter spin-off period should be positive for the focussed zfx with the improvement to its capital return ratio - the same factors that increase its attractiveness as a take-over target.

 

[Halba]

Yep, the mngmt team probably needs to be more aggressive in their exploration. Sure they are doing a lot of jv's and stuff, but the key is finding another monster orebody in QLD to replace century. I know easier said than done.

 

[vishalt]

Zinifex, Umicore May Sell Shares in Zinc Venture in September

By Tan Hwee Ann

April 2 (Bloomberg) -- Zinifex Ltd. and Umicore SA, which are combining their zinc smelters to create the world's largest maker of the metal, may sell shares in the venture in September.

The companies are hiring bankers for the sale, and haven't decided on a potential amount to be raised, said Martin MacFarlane, a spokesman for Melbourne-based Zinifex, over the phone. The companies could sell stock worth 1.5 billion euros ($2 billion) in the venture, De Tijd reported on March 31.

The new company, to be incorporated in Belgium and based in London, will overtake Seoul-based Korea Zinc as the biggest producer, making about 10 percent of global supply. It will make 1.2 million tons of zinc and about 250,000 tons of lead a year from smelters in Europe, Asia, Australia and the U.S.

``The intention is to decide on the share sale in July and August,'' said MacFarlane.

Zinifex will contribute 60 percent of the assets and Brussels-based Umicore 40 percent, Zinifex said December. UBS AG was the financial adviser to both companies.

Anyone know what this means lol?

 

[Gundini]

Not sure, but ZFX not pretty of late.

I sold out today.

 

[vishalt]

im buying more

 

[Gundini]

im buying more

Seems to be good support around $15.13. The chart look horrible though. Do you think it will hold?

Are we going to see $14.25 ? (support), $13.57 ? (next support)

Weekly MACD heading for the Abyss

Would think there will be some bargain hunters around the low $15's...

Any takers at these levels?

 

[vishalt]

Doesn't look too good on the charts no, went through that support zone, i'm just gonna keep buying @ support points, im chillaxed.

I read somewhere yesterday that Zinifex is more of an attractive takeover since its combining smelters with Belgian Umicore.

It's also funny - the market manipulation happening.. those Zinc stocks keep falling and so does the price lol, reminds me of Copper in May.

 

[Out Too Soon]

im buying more

Looks like ppl went over board punishing ZFX for going ex div, I started to get depressed, pretty stupid really, I should just be happy to get the chance of a great bargain while it lasts. Just where should we consider the support line to be??? $15.01??? & what should I sell (@ a loss, GLE, DLS, BON) to buy more ZFX??? So many questions, better hurry up & make a decision. help!

 

[eMark]

Looks like ppl went over board punishing ZFX for going ex div, I started to get depressed, pretty stupid really, I should just be happy to get the chance of a great bargain while it lasts. Just where should we consider the support line to be??? $15.01??? & what should I sell (@ a loss, GLE, DLS, BON) to buy more ZFX??? So many questions, better hurry up & make a decision. help!

I'm in the same boat as you. I am hanging on to PSA & JMS at a loss, better of selling at a loss and putting the cash into ZFX I feel. Great chance to reduce my average on a solid stock (as I am currently well below my BUY for ZFX) It's a real laggard at the moment, but it will turn around, it's just a matter of when. Remember when ZFX went backwards from 13.50 to 9.00 around this time last year I think. It's not as if Zinc is finished...

Hope that helps, you're not alone.

 

[vishalt]

Those are my next buy points: $15.10, $14.10, $13.50, $12.30 respectively.. ofcourse i'll try and monitor if ZFX can actually hold those points rather than just put my orders in and go to sleep.

 

[vishalt]

Ah - I read a pretty nice article on The Financial Review, i'll just quote: "Analysts in Australia expect Zinifex to return the bulk of the proceeds of the float to share-holders by way of dividends."

Could see a special dividend + higher profits coming up methinks!

 

[nomore4s]

Looks like it broke through support at $15.10 today, but it may still hold there depending on what tomorrow brings, but imo it looks likely the next major support will be where the 200ma line hits the support line at about $14.20-$14.30. If it breaks down past that point it could get ugly, the next point of $13.50 might not have enough support to stop the fall as it will have a bit of momentum by then, but it could of course find its own support anywhere between $12.10 & $14.00. Both the MACD and the RSI are looking very weak at the moment as well.
I won't be rushing out to buy any till it shows signs of slowing down and finds support somewhere. (I don't hold)

 

[Julia]

Julia - don't try and make people change their mind and sell with their own post - it's cruel.

I'm not trying to make anyone do anything. Just recognising some of the same type of statements I used to make to justify holding a falling stock.


I can remember convincing myself that because GTP had gone over $5
then that had to be its "true value" (no idea why!) so I managed to produce every rationalisation possible to justify why I was holding it as it plummeted.
Still made plenty out of it, but would have made more had I sold it as soon as the downward slide started.