re: Ann: CSE: Copper Strike Takeover Offer to... I just put in a...

re: Ann: CSE: Copper Strike Takeover Offer to... I just put in a buy order at 66.5c. The reaction to KZL's quarterly from funds and institutions was as expected. These guys have to trade regularly and make quick profits or they move on. At face value they look at the copper price, see a peak and figure stocks like KZL are a sell.

However, like some have suggested, the floods did impact QLD operations and some companies have built up stockpiles or had a direct impact on operational costs. KZL certainly has some work to do to replenish the reserve and resource base, control costs and get production growing again but I expect that EBITDA and profitability should increase substantially in 2H11 as a result of higher prices.

There is still some angst and uncertainty hanging over the markets overall with Spain, oil and the mid east, but this will provide another buying opp as did the market lows of 2008.

Go outside of the major citites in China and it's like a trip back 30 to 1000 years in time. Still 20-30 years of work to be done there...

Recommendation: Accumulate slowly (HC don't have this option below)