Well, personally I think we are seeing a bit of consolidation here after the markets ran up so strongly in October. Zinc still has yet to have a run. All zinc stocks are lagging the market and simply recovering from oversold positions, so we really have to see headline stocks drop below 700,000 before we see some real movement in price or an increase in speculative interest.
The good news is that we are almost there.
According to the LME...
Headline stocks: 765000 On Backorder: 73650 Available: 691350
If demand can maintain for the next few months, we should see some movement going into 2012. Everybody always feels better about a New Year...possibly we could see KZL move up a bit before year end, from mid Nov, and again in early 2012. It is a set and forget though. Like any speculative plays you need 10 times the patience of normal trades.
I think pushing out the deadline to sell Lounge Lizard by 3 months has also caused immediate interest to wain.
KZL Price at posting:
37.5¢ Sentiment: Buy Disclosure: Held
