ZFX - Zinifex Limited

[chicken]

Re: ZINIFEX..ZFX

Warren Buffet yea there are a few on sale but the buys and sells just about equal...as soon as they anounce their exploration finds everyone will scramble to buy back in..NOTHING HAS CHANGED,....my targety is still $4...and their profit EPS still stands at 45c...

 

[Warren Buffet II]

Re: ZINIFEX..ZFX

I just checked so the broker has bought 300k...shares which he sold short for deliveries...only 500k left so he will work this share tomorrow to get rid of his shorts..

Short selling

If you are short-selling shares is because we think the price is going down, is that right?

then as the company will buy their own shares he will bring the price up..its a game they play...the company is sound..its just one broker working it real hard,,,I have not sold because 84% is held by 20 shareholders and they have not sold just a few millions went through...by sharetraders..

The company will buy their own shares, that is right $70 mil, but also they do not want to buy too high.

Is going to be interesting this week.

 

[chicken]

Re: ZINIFEX..ZFX

Brokers shortsell shares as they have leverage..they buy and sell at the same time and can therefore direct the market..either up or down..nothing to do with a share will fall...when you are in this position you can retched the share UP...or DOWN...its a plan if you can play with millions..and ZFX is a typical case where this is happening...it will settle down again as it has run hard but will rise as soon as we get more news the company is debt free..its got a good cashflow..and any longterm holder will benefit..and its a diversified miner with hugh potential...

 

[tech/a]

Re: ZINIFEX..ZFX

Chicken

Do you honestly believe this conspiracy rubbish you espouse!

Price movement is simply supply and demand.
Some think it cheap others expensive.
When more think its expensive than cheap then the price drops to a level where buyers return.

People trying to explain why their beliefs arent panning out as they think------ look for reasons why.

Thats what your doing!

 

[doctorj]

Re: ZINIFEX..ZFX

Poppycock!

Price movement has nothing to do with supply and demand, its a function of the phases of the moon and the number of days to the next solstice!

 

[tech/a]

Re: ZINIFEX..ZFX

Yeh that too!!

I knew that---take a look at any Random fractal its bleeding obvious.

 

[chicken]

Re: ZINIFEX..ZFX

Funny, how the big seller disapeared today....maybe your graph shows that it will rise today..we shall see nothing has changed with the company..I also check another stock report side and one of the brokers emailed me that he was shorting this stock..may rise today but I shall keep an eye on them..the company is sound and all their prospects are on target...re my theory...retching shares up or down this broker I know does it all the time as he manages a big fund...if you have deep pockets its not a problem as it is not illegal to do that...one way of doing business...my target is still $4..but it may take a little longer to get there...ZINC is up check www.zinifex.com.au

 

[chicken]

Re: ZINIFEX..ZFX

The buyers have returned it looks as if the shorts are staying away...anyway good luck to everyone..

 

[malachii]

Re: ZINIFEX..ZFX

Good to see a bounce off the last line. I'd like to see a couple of days of increases now before the selling starts again.

Malachii

 

[chicken]

Re: ZINIFEX..ZFX

I agree with you noticed the shorts have not increased..on the ASX..so a uptrend tomorrow..this stock is volatile..84% is owned by 20 shareholders they are not selling..only 16% is available meaning 75million shares..are avail;able for trading..still a few shares..should rise again tomorrow..silver is starting to get a mention...ZINC is $1799....a tone check www.zinifex.com.au and read all about it

 

[tech/a]

Re: ZINIFEX..ZFX

Only a higher high will convince me that this stock hasnt found its percieved(By the maket) value. Could go sideways!

 

[malachii]

Re: ZINIFEX..ZFX

I agree Tach/a - I'll be watching this current rally(?????) pretty closely I think!

Malachii

 

[chicken]

Re: ZINIFEX..ZFX

I got this from another board...check www.kitcometals.com the chart for ZINC and where it is heading..I said all along ZINC is short..via Macquarie report..on that webside you will get the price of metals plus ZINC by week,by months,by year..noticed the curve going up..most intresting..I feel this is a good find for people to get their latest update..I find it most intresting good for ZINIFEX...

 

[chicken]

Re: ZINIFEX..ZFX

check www.kitcometals.com under historicals of zinc...intresting to see how this stockpile is shrinking fast...check it yourself I have been saying all along that Macqurie said there will be a shortage well the graph clearly shows that..so any one who says differently please check that side

 

[Warren Buffet II]

Re: ZINIFEX..ZFX

Brokers shortsell shares as they have leverage..they buy and sell at the same time and can therefore direct the market..either up or down..nothing to do with a share will fall...when you are in this position you can retched the share UP...or DOWN...its a plan if you can play with millions..and ZFX is a typical case where this is happening...it will settle down again as it has run hard but will rise as soon as we get more news the company is debt free..its got a good cashflow..and any longterm holder will benefit..and its a diversified miner with hugh potential...

I disagree with your definition of shortselling, if someone is shortselling is because they believe the price is going down.

This is the definition I found:

- Short Selling

The selling of a security that the seller does not own, or any sale that is completed by the delivery of a security borrowed by the seller. Short sellers assume that they will be able to buy the stock at a lower amount than the price at which they sold short.

Selling short is the opposite of going long. That is, short sellers make money if the stock goes down in price.

This is an advanced trading strategy with many unique risks and pitfalls. Novice investors are advised to avoid short sales.

Ref: http://www.investopedia.com/terms/s/shortselling.asp

 

[whizz21]

Re: ZINIFEX..ZFX

Date: 16/3/2005
Author: Ian Howarth
Source: The Australian Financial Review --- Page: 21

Australian lead and zinc group, Zinifex, is moving in a new direction. It hasunveiled a long-term plan to focus primarily on mining, and reduce its smeltingactivities. It will also focus on metals like gallium and germanium that it canproduce from its own zinc concentrates. Zinifex is the reincarnation of thefailed Pasminco. The rise in metals prices has already lifted Zinifex'sshare price, which is trading at around the $A3.21 mark. The big rise in theshare price of Zinifex began in early 2005, when the group's marketcapitalisation rose by $A800 million. Zinifex is now worth around $A1.6 billion

 

[chicken]

Re: ZINIFEX..ZFX

check www.kitcometals.com ZINC is higher by $6 US a tonne and the brokers are shortselling...makes you wonder what is going on...there is one broker selling this stock down why...I do not know but someone is picking up stock cheap..its a big riddle..but we should soon know in the next few days...

 

[TjamesX]

Re: ZINIFEX..ZFX

From a poster on another forum I read (and I take a lot of notice of) - credit to "Full Time Investor"

I bought at $1.80 in Sept. 2004. ZFX was undervalued by the market for many months since the IPO in April 2004, due to the negative perception of its "linkage" from the Pasminco saga.

IPO was $1.85. The banks that had lent to Pasminco had to swap debt for equity as part of the restructuring process. Upon listing, ZFX was sold down to $1.49 in May 2004 as some of the banks decided to have closure and close their files on a negative chapter.

Over the ensuing months, the commodities market boomed, but ZFX has only zinc and lead, metals that tend to lag price rise trends of other base metals. Despite announcing two profit upgrades, the market continued to shun ZFX. The players that were burnt by Pasminco were not prepared to take another risk. Brokers were reluctant to recommend ZFX due to Pasminco.

I viewed this as a serious market mispricing when I bought at a forward P/E of 5. I relish in such positions as they are rare.

ZFX started its price rise in Dec. 2004, after another profit upgrade (this was how dense the market was that it took 3 upgrades to be noticed).

ZFX hit $3.41 on 8 March 2005 but has fallen back to $3.13 today.

It is at P/E of 8.8 FY 05 and forward P/E of 8.4 consensus FY 06.

This is a low P/E. However, the critical aspects for analysis of ZFX are the expected LME price for zinc (because ZFX does not hedge), which is expected to continue the upward trajectory and the falling stock piles of zinc, which would underpin the spot price, other things being equal.

ZFX announced an on-market share buyback for $70 million commencing April 2005. This exercise (subject to resolution with ATO) will underpin the share price of ZFX. Looking at the figures, I reckon this on-market buyback will be of value to shareholders. My thinking is that ZFX's price will rise over the next few months. I will hold.

ZFX's balance sheet is strong. It has no derivative exposure and thus, no sudden surprises from such contracts.

To me, ZFX is still undervalued by the market, but by a much lesser margin than before. Should this undervaluation continue, the likelihood of ZFX becoming a takeover target increases.

Only time will tell.

Note: This post is not investment advice. Investing in mining shares are inherently of a higher risk profile compared with consumer non-discretionary sector.

cheers
TJ

 

[RichKid]

Re: ZINIFEX..ZFX

From a poster on another forum I read (and I take a lot of notice of) - credit to "Full Time Investor"
cheers
TJ

TJX,
Now that was a good quality post TJ and puts things clearly in perspective imo, clearly we have to verify the figures and contentions but it is logical and easy to follow, no claims out of the blue. It's a shame we can't have more of those types of critical and constructive posts. Thanks again TJ.

 

[chicken]

Re: ZINIFEX..ZFX

Thats the message I have been trying to tell everyone good post..see www.kitcometals.com there you can get the graph on all metals...check it out..stockpile went down by 3500 tonnes....