This is a little bit funny. These are the kind of morons that work at investment funds calling shorts on companies like Kagara, with little understanding of what is actually happening in the business or the commodity markets they are focused on in the future. However, it is useful intel, even if it only serves to understand the sheepish mentally of the opposition in the market.
You have to scroll down half the page to see a sell tip on Kagara by John Rawicki - a noob with 9mths of experience at Ord Minnett and a 2 year gap in his employement portolio prior to Ord Minnett. See: LinkedIn Profile
Last company he worked for 2 years ago (MF Global), also went backrupt today in the US. All in all, a guy with 3.5 years experience accumulated at 3 companies, one of which is broke, telling you what to do with your money - lol.
Kagara is in transition. Managing director Geoff Day was appointed earlier this year with a brief to undertake a wide-ranging review and make necessary changes. KZL has given detailed guidance for full-year 2012 and broader guidance for the next five years, including required expenditure. A further two years is needed to meet largely unchanged long-term growth targets. Copper output is now forecast to fall from 22,500 tonnes in full year 2011 to 18,000 tonnes in 2014 before rising to 30,000 tonnes in 2016. Sell on rallies.
Not a mention of Kagara's zinc potential and future focus and capacity to achieve 100,000t of zinc production, nor the sale of Lounge Lizard, nor a mention of any announcement expected soon about Admiral Bay. Typical of someone who reads a headline and says sell, copper production is down - lol. What does sell on rallies really mean anyway? Sell on rallies, but buy on lows? Make your mind up...it's either a clear cut sell or a buy. Half calls are a very dangerous game with speculative stocks.
KZL Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
