EZM - ZINC - Cramer - Bobwins, Hweb, Len, Skills, All.
Guys,
Disclosure, I have a $1.24 average in a boatload of EZM. I am involved in the zinc sulfate manufacturing business (for 18 years) and follow zinc every day. I have posted in depth DD on zinc and EZM on this board if anyone wishes to search my previous posts. My take is that we are going to see a short squeeze on the supply of zinc metal that will last the next 18 - 24 months. I talk to Zinifex, Teck Cominco and ZincOx middle managers weekly, all are in agreement that zinc concentrate supplies are as tight as they have ever been, and no major new source is on the horizon. They also agree that the only thing that could de-rail the market is a MAJOR failure of the global economy. It is also true that the miners are going after their low grade ore (lower percentage of contained zinc) and saving the high grade reserves for the day when prices go down, this just adds to the shortage! What I am starting to see for the first time is my customers are worrying about the fact that they only carry a "just in time" inventory of zinc sulfate, and have no emergency reserve inventory. Many of them are asking me if we are going to have problems getting raw materials and delivering product if the zinc price keeps going up, and inventories go away. The answer is yes, we are already having a hard time buying raw materials because of the fierce competition with other producers. What do you guys think will happen when the vendors of say GM, Ford, Eveready, Michelin, ect. figure out there may not be enough zinc to go around in the next 2 years. What will happen if they start building emergency reserves???? Now, remember, there will be a cliff to go over when supply catches up with demand, but I think that day is still a long ways off.
Just go to www.kitcometals.com and study the historical charts. Watch the daily LME inventory numbers.
As far as Cramer, all he has done is bring attention to EZM. The true value and pps will come with or without Cramer. I guess if I was a swing/day trader I would pay more attention, but I am going for a long term hold here. Examples of a long term hold for me has been MDF (mdpa) from $.30 to $2.88 sale, VPHM $4.40 to $22.40 sale.
Holding EZM, HBM, BWLRF for long term and looking for multiple doubling before selling and paying long term cap gains.
The above is all my "hope"! And I hope all of you do well with your investments. I enjoy reading all of your posts and THANK THE FOUNDERS AND REGULAR CONTRIBUTORS here for all they have done. This thread has changed my life in a huge way.
Good luck gents! I am off to Cabo in 1 hour and "hope" to catch a Blue Marlin and fill my cooler with Tuna, Dorado, and Wahoo!
Kipp
