Thanks for the thoughts on zinc miners...
I just took a peek at Trevali's investor's presentation and financials and I find:
(a) Pretty close to a pure zinc play as one could expect to find.
(b) Pretty low-grade underground mines (yuck, but at least heavily leveraged to the price of zinc).
(c) Comparatively low revenue, high-debt, losing money (13 million revenue, 7 million interest payments, 7 million net loss for all of 2014). Again, pretty heavily leveraged to the price of zinc.
(d) Nice opportunity for seemingly profitable mine reopener near the coast in Canada. Should be especially profitable given the recent $CAD weakness. But reopeners go to zero (in my experience, especially zinc mine reopeners) on commodity weakness. Again, heavily leveraged to the price of zinc.
(e) 1 million shares per day volume at roughly 1M$/day. Big enough for a 100K$ swing trading position.
CONCLUSION: You'd have to be plenty bullish on zinc to buy this one, but it is heavily leveraged to the price of zinc.
If it weren't for those interest payments, I'd be thinking about giving it a twirl.
I only spent 15 minutes on this so I could be off-base. Am I missing something?
Don't mean to be disrespectful.
MontyHigh
