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Zinc steadily declining but the only reason ZFX is holding at its current level is because of the upcoming dividend.
Wish it'd fall to 15/14.50 so I can buy more :/
Wish it'd fall to 15/14.50 so I can buy more :/
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vishalt said:
You may get your wish Vishalt, as soon as the record date has been reached. I reckon there will be heaps dumped straight after especially if LME stocks keep building. I'm getting out of Zinc for now........just doesn't look good.
MB
Moneybags said:
I agree MB, was looking to buy ZFX at around $16 for the D/E but the chart is looking weak and with zinc not looking so good ZFX could really struggle after D/E date so I'm not willing to take the chance.
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I suppose that's a shrieking possibility lads, might not build on my current share base of ZFX till after it drops, I still believe the fundamentals are there - just volatile in the short term.
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vishalt said:
Vishalt,
If you have a look at other Zincers charts PEM,CBH,KZL,INL, they have peaked around Dec and are now heading down due to POZ. JML is looking great but an exception and TZN has just reversed but for how long. ZFX is bearish but has held up not too bad and it is my opinion that low PE and dividend coming that have helped in that regard.
Not long until we'll know anyway.
MB
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vishalt said:
Volitility?, doubt that!
Speculation is almost gone in the Zincers and even the total exit would only see further marginal falls.
Zinc dynamics are still thier............just not as artificially inflated ATM
.
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Thanks for the comments.
Ta for the small-cap Zinc list there Moneybags, i'm looking into them! Do you hold any of them?
Cheers again!
Ta for the small-cap Zinc list there Moneybags, i'm looking into them! Do you hold any of them?
Cheers again!
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vishalt said:
Vishalt,
I sold the bulk of my INL yesterday, still have a small parcel.
I am holding KZL but minor amount.
I watch all the Zincers out of interest but my favs are BSM & JML........both have plenty of upside ( my opinion only )
MB
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Citigroup has its eyes on Zinifex apparently......price may be being supported by someone accumulating as we speak; or maybe they are waiting for the ex-div bailout to pounce!
This extract from article in The Australian
Big is better as resources hit-list embraces BHP, Rio
Andrew Trounson
March 27, 2007
RESOURCE companies dominate a list of potential takeover targets compiled by broker Citigroup, with even the venerable behemoths BHP Billiton and Rio Tinto having the indignity of being targets.
With private equity consortiums globally pursuing mammoth, largely debt-funded takeovers, Citigroup has picked out companies with plentiful pre-tax earnings which can service an acquirer's interest payments for an entirely debt-funded bid.
BHP and Rio are generating so much cash that, on an 8 per cent cost of debt, raiders could pay premiums of 90 per cent-plus for the global giants that are already capitalised at $163 billion and $103 billion, respectively.
But zinc major Zinifex is the most attractive of the big resources plays, with sufficient cash generation to support a takeover at a 300 per cent premium.........
This extract from article in The Australian
Big is better as resources hit-list embraces BHP, Rio
Andrew Trounson
March 27, 2007
RESOURCE companies dominate a list of potential takeover targets compiled by broker Citigroup, with even the venerable behemoths BHP Billiton and Rio Tinto having the indignity of being targets.
With private equity consortiums globally pursuing mammoth, largely debt-funded takeovers, Citigroup has picked out companies with plentiful pre-tax earnings which can service an acquirer's interest payments for an entirely debt-funded bid.
BHP and Rio are generating so much cash that, on an 8 per cent cost of debt, raiders could pay premiums of 90 per cent-plus for the global giants that are already capitalised at $163 billion and $103 billion, respectively.
But zinc major Zinifex is the most attractive of the big resources plays, with sufficient cash generation to support a takeover at a 300 per cent premium.........
Experts are always saying that zinc price will rise because supply of zinc at LME is already so low. I do not buy that story, China is a huge exporter of zinc, if China does not need the zinc, why should I be optimistics about this metal.
The chart is still showing a downtrend for zinc.
Had advised clients to short zinc, margin required for 1 lot is USD9,500
http://basemetal-trading.blogspot.com/2007/03/short-1-lot-of-zinc.html
The chart is still showing a downtrend for zinc.
Had advised clients to short zinc, margin required for 1 lot is USD9,500
http://basemetal-trading.blogspot.com/2007/03/short-1-lot-of-zinc.html
michael_selway
Coal & Phosphate, thats it!
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I don't think its a story of whether or not china 'requires' zinc - they're still easily the largest consumer of the metal in the world and growing. I think the question is how much old high-cost (or new for that matter) chinese capacity has come on line over the past 12 months as a result of the higher-prices, and what impact will this have on the global supply-demand balance.
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Zinc just broke past resistance @ 1.50.
You are right, looks like zinc is turning from downtrend to uptrend. Let's see if this turn is successful.
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