I think it is very unfair to label fearful posters as fear monkeys, the majority raise valid concerns. The poor management is depicted in the share price, and the SP rarely lies.
[Notice they did not say..."while Kagara is completing the restructuring of its business and working capital"...
i.e. the use of the infinitive form of the verb indicates fact rather than an ongoing process of whose outcome seems uncertain. It seems Kagara are pretty confident that they will complete this process. This statement seems more about reassuring suppliers as to their ability to pay bills etc.]
If the outcome was certain it would be clearly indicated, unless someone at KZL cannot word statements for bananas. If were going to find some hope, taking comments out of context is not one way to do so.
Personally i think Long-term vision is good, provided we do get a depreciation in the AUD soon. I agree with Berlin's strong belief in the future demand outpacing supply of ZINC. Copper demand is also going to benefit from the BRICK countries.
For KZL, though, costs pressures means a depreciated AUD should put their business model in a better condition. My concern is why has management allowed the company to get to this 'tight' position. Surely an appreciated AUD should of been factored into calculations. Anyway, whats done is done, rates may be cut in May and then we may see a depreciation of the AUD. Lets hope so.
Bottom line, todays loss may be tomorrows gain, unless the company goes broke. That may be an unlikely outcome, but with thousands of stocks to choose from why take the risk ? But hey, generally speaking, the more risk the more return. Right?
Provided its educated and not emotionally infatuated risk taking.
Enjoy the cartoons in an attempt to laugh our KZL sorrows away.
KZL Price at posting:
12.0¢ Sentiment: Hold Disclosure: Held
