Bit more hype than reality. I could see prices moving up 10% by June but 28% even by year end would be quite a move.
The market needs to move up at present in order to make the sell more attractive if and when it happens. Just be careful of buying too much into this rally. I sold some KZL for 29c I bought at 26c for example. I am still bullish on zinc and KZL and will keep buying but it's prudent to book profits along the way to fill up the coffers.
We could turn around and worry about the S&P downgrading France and a Greek default in a heartbeat. Interbank lending rates such as LIBOR (although peaking) are still very high, as are Italian yields on 10 year notes. There will be another big bond/S&P short attack coming soon, so use this rally to better position yourself.
I'd give it 4-6 months before we start to feel like we are really getting out of the woods with many of these issues behind us.
Good chance zinc inventory will take a good pounding in a month anyway...
KZL Price at posting:
28.5¢ Sentiment: Hold Disclosure: Held
