I agree with you. I sold the stocks I bought at 36.5 for 42 just to make a quick 10% gain and put the cash back in the bank. At this point I'm not too fussed if it goes up or down. If it goes up I will sell the stocks I bought at 42c for 48c. If it goes down I buy some more at 36.5.
KZL in the short-term (1 month) will be hold hostage to macro events and I don't see those events (despite the recent rally) as being resolved. Greece is like a Lehman's shark lurking in the background. Other factors like Italian bonds & the LIBOR rate bear watching.
Mid-term (3mths) - looking much better for KZL. Zinc demand as well as prices are forecast to improve plus their could be good upside to selling Lounge Lizard. KZL needs to provide continued evidence that costs are falling (likely considering a 15% fall in the AUD) and production is rising. A temporary fall (now) in prices has less of impact because of hedging.
Long-term (6mths) looks brighter indeed as Europe will move out of recession and business recovers in Japan and in the US.
I'd give it 6 months before it becomes a hot day trade again. Be better than 4 years ago because this time we will have a real zinc deficit with Century coming off line in 2014/2015.
KZL Price at posting:
42.0¢ Sentiment: Buy Disclosure: Held
