It's not a rude question. I just think it's kinda irrelevant because price points are anyone's guess. I choose a price to buy and a price to sell. Where the price goes before, during or after is irrelevant to me as long as I pickup a minimum 10% gain when I sell. I have the same average costs now as the CEO @56c, so if you want to know a price target, ask him and tell me what he says.
I think there are much bigger things to focus on as opposed to price points and charts, which are helpful but won't really tell me about KZLs share price in the short to medium term.
The things you should be asking yourself are...
1. Has the USD bottomed? Has the AUD topped? If yes, KZL will see direct impacts on its profitability. 2. How happy are KZL staff with new management. Keep in mind that restructuring is stressful and emotional and miners are flooded with job offers in North Queensland. Growing, motivated and happy production teams, produce more and work harder. Most telling will be how new management are settling in. Look for clues in the Sep 21 brief. 3. Commodities are global by nature so what is the outlook for global growth. US & Europe aside, if there is still growth globally, then there is still demand for metals and support for prices. See: IMF cuts 2011 global growth forecast to 4.0%. 4. In the past everyone went nuts when they though zinc was going into deficit back in 2006/7. Problem was that a lot of new mine supply came online and no big mines really terminated operations. It was a premature prediction but I rode it for a while on ZFX (Zinifex) and got out late 2007 before it all fell apart. This time is different though. This time I think zinc will become very tight. For some reason 700,000 is a key number. Once inventory levels reach this, speculators will pile in as we approach 2014. So confirmation of a continued fall in stockpiles will support the SP as would positive readings on any of the above.
KZL Price at posting:
62.5¢ Sentiment: LT Buy Disclosure: Held
