ZFX - Zinifex Limited

[chops_a_must]

What gets me about these dips of late, which are purely financially related, is that the miners cop it in the neck. Some bank goes broke, and who cops it? Not the bank going broke, but some miner with nothing to do with it. Lol! Damn lemmings.

Seriously, what do the likes of ZFX and OXR have to do with what's going on? How could a 6% drop be justified?

If this ends up in a crash, I'll just put everything in to stocks like ZFX and live on the dividends. Lol! But it really is quite stupid.

 

[uhu]

Hi!

I just wake up....and I'm a "littlebit" nervous about the drop of ZFX and OXR....awful.
Well, I'm not an aussie citizen, could sbody tell me the latest news? Why these 2 stocks dropped much bigger than BHP or RIO? Something wrong...? What are the aussie brokers saying about Zinifex and Oxiana?

Thanks.


uhu (owl)

 

[UMike]

Can't tell you why but KZL and CBH dropped very similar amounts.

I'd suggest panic selling as the fundamentals haven't changed much.

 

[uhu]

Thank you...so, ZFX and OXR are not alone...

What type of fundamentals? You mean global finance problems or the financial datas of the two companies? (I've read a lot and in my opinion these two companies are OK., although f.ex. zinc prices will fell a bit in the next year, at least the "clever man" say this)

And, I've read two aussie hedge fund is over. So, I'm just speculating, but what will the other funds do in the future? I'm afraid they will sell a lot of shares, because they don't want to suffer losses...so, it would cause a long depression in the market.



Well, I can only hope and from here, from the opposite side of this bearish planet.

 

[Nicks]

Can't tell you why but KZL and CBH dropped very similar amounts.

I'd suggest panic selling as the fundamentals haven't changed much.

I think because the underlying fundamentals of a stock like CBH (which I got out of) are no where near as strong and proven as ZFX and OXR. These two are big enough and with solid enough fundamentals and size that they will out last the little dips and corrections and out perform in the super cycle which isnt going to go away.
ZFX is an excellent stock, with high dividends and yes exposure to commodities - but this is a good thing for a long time to come. When something is hedged against positive situation, get onto it. Dont wait and hope for the doom and gloom to come so that you can feel good that you didnt get in. The commodities super cycle is exactly that, one massive lasting cycle for finite resources and ever increasing demand, albeit it small flutters and fluctuations. In the lng run though they will outperform.
Stocks like CBH however, have not got the stamina and size to get through unscathed. As soon as it became any decent, someone like OXR or ZFX would just gobble them up - which hasnt happened for a reason.

(all IMO of course).

 

[doogie_goes_off]

With the lead price improving we will see the rise and rise of PEM, OXR, ZFX. Just sit back and watch the dividends roll in.

 

[uhu]

Nicks and doogie,

Thanks your analysies...well, it seems clouds are getting bigger... (-8% one day!)
Now I decide I won't watch my share's prices for a week...I didn't want to get (more) nervous.
And yes, ZFX is the digger of the year...and OXR has a great tp (4.86 AUD) from Credit Suisse...so I (must) hold my positions.

 

[Gundini]

Surely this out of favour stock is becoming oversold...

Down another 8% today...

You would expect long term support @ $15.21 to hold, but the market has taken a beating over the last few weeks and flip a coin when it will end, if it ends...

Rock solid company unfairly punished IMO...

 

[YELNATS]

Surely this out of favour stock is becoming oversold...

Down another 8% today...

You would expect long term support @ $15.21 to hold, but the market has taken a beating over the last few weeks and flip a coin when it will end, if it ends...

Rock solid company unfairly punished IMO...

Absolutely. Just took the opportunity to top up at $15.64. Pays a 9% fully franked dividend as well. Can't be bad.

 

[finnsk]

Absolutely. Just took the opportunity to top up at $15.64. Pays a 9% fully franked dividend as well. Can't be bad.

You think that they will be able to pay 70c dividend again this time around?
Will the falling prices of Zink etc not have an impact on there profit then ultimately smaller profit again smaller dividend or will that be next year?

 

[Gundini]

Can't see Zinc prices falling too much more if supply and demand have anything to do with the senario... The last time Zinc inventories were this low was.... ahhh.... never!

 

[YELNATS]

Can't see Zinc prices falling too much more if supply and demand have anything to do with the senario... The last time Zinc inventories were this low was.... ahhh.... never!

Another key factor in ZFX's future prospects is the value of the upcoming Nystar deal with Umicore and the subsequent sale via an IPO, as per the Chairmans' remarks from the recent July 26 AGM.

 

[Lachlan6]

(ZFX) has not escaped the recent market sell off, and it is sitting pretty precariously at the moment at a possible level of support being the 50% retracement level of the June 2006 range to this year's high. It also coincides with an important horizontal support level and cluster of activity earlier this year. Due to the current short term bearishness of the overall market I will certainly not even consider entering ZFX unless it displays a very bullish reversal pattern.

All bets are off if $14.80 is broken, the next target would then be $13.20. Notice how the OBV has not been affected at all really with the recent sell off, a good sign that the insto's are holding on despite weakness. That to me is a very good fundamental sign of this stock. May prove to be an absolute bargain, but only for the patient.

 

[dubiousinfo]

The SP has certainly taken a bashing.

Due to report soon and with the current share price I am expecting ZFX to show a PE of around 3.5. Also a dividend in excess of $1.00 would not surprise.

Will look to get back into this, once things settle down.

 

[toothfairy]

Zfx is riding the roller coaster today, was the announcement that important or is it turning around?

 

[uhu]

What announcement?

Huh...It was 13.92 at after midnight...I am lucky because I didn't see it...
Anyway, I am a bit confused. I waited more drop following Dow Jones (see the chart Teck C, Freeport, BHP in NY etc....so, aussie people now understand nothing problem with this firm? No credit but a lot of cashflow!
I think it would be fine if some analysts warm the merger story between ZFX and OXR to hold the price above 15-16 AUD.

 

[Rafa]

no the announcement came out hours before...

i was watching it, it got smashed... but its done a 1.50 turnaround...
why didn't i buy it at 14

 

[Love Zn]

The announcement had no effect on ZFX and you wouldn't expect them to, announcement came out in the morning and it was panic selling, stop losses being triggered, etc causing it's fall.

The recovery at the end was possibly bargin hunters coming in, that know that ZFX are due to announce annual returns on the 23rd August and will be looking for a dividend of around $0.70-$1.00. We could still see this SP falling, we need the market confidence to turn around first.

In the mean time, put options have been doing well, but you could say that with any share at the moment.

 

[toothfairy]

Did anyone buy/sell/short this share today @ around $14. I am eager to buy soon knowing the good fundamentals, but just that POZ is not playing ball atm. Zn stock is depleting steadily (albeit slowly) but POZ has gone back to the level of like May 06 when SP of Zfx was only around $12. Hard decision, may be I'll wait after the dust has settled.
Tonight at this stage prices of base metals and world stock markets are going south some more.

 

[DionM]

I bought a small parcel at $14.70ish today. Paniced a bit when it slid further to $14, but it came up again nicely at close.

I am in for the long term; had been eyeing it off but just waiting for a time to buy.