Horsehead Holding Corp fka ZINCQ

[pick em low]

Article today: Hedge funds are optimistic on Horsehead Holding Corp. (NASDAQ:ZINC). 15 funds were long $172 million (representing 25.90% of the float) of the stock in the second quarter, nearly unchanged from 15 funds and $179.54 million in the first quarter. Famed value investor Mohnish Pabrai, who many investors think is the Indian Warren Buffett, owns 6.33 million shares, good for 15.63% of his portfolio. Hedge funds think the zinc producer is very well run, has a wide moat given its cost advantages and long term contracts, and is highly levered towards inflation. Shares haven’t done very well this year as zinc prices are off substantially due to a weakening Chinese economy, but Horsehead Holding has a book value of $8.48 per share and analysts think the company will be profitable next year.