Can we invest in zinc stocks
+++ Breaking News - Takeover +++
ADVERTISING / ADVERTISEMENT - Börsennews.de is not responsible for the content of the advertisement.
+++ BREAKING NEWS +++ BREAKING NEWS +++ BREAKING NEWS +++
STRONG BUY: Canada Zinc Metals
WKN: A0RAQJ, TSXV: CZX
LATEST NEWS - BILLION JOINT VENTURE - BEST RAW MATERIAL - INSIDER PURCHASES - SHARE BUYBACK PROGRAM - TAKEOVER FANTASY - TOP MANAGEMENT
While the precious metals sector is treading on the spot, the zinc sector is rotating. At Canada Zinc Metals, too, events are literally rolling over and over again. Now the company has published news that fits exactly into the puzzle of a possible imminent takeover of the company!
Meeting with Tongling Nonferrous Metals Group
The company has so far already had a large number of strategic investors from the industry - all of them multibillion companies from the non-ferrous metal sector. Teck, Korea Zinc, Lundin Mining but the largest shareholder is the Chinese state-owned company Tongling Nonferrous Metals. Tongling already owns around a third of the shares in Canada Zinc Metals. The Chinese have kept investing in the company!
Now high-ranking representatives from Tongling have announced their visit to hold talks with the CEO and the chief geologist!
This alone will make shareholders sit up and take notice! Hello, what's behind this surprising visit? What will the conversations be like? Is it even a takeover?
If you combine this news with the latest press releases, then the explosiveness increases many times over!
The price of zinc is trading near a 5-year high and the sparrows are whistling it from the rooftops:
ZINC IS BECOMING SCARCE AND ALWAYS SCARCE!
Professional pessimist Goldman Sachs is only for one only one Metal bullish: zinc
Many zinc stocks are trading at highs, but if you compare them based on their intrinsic values, you will find out that Canada Zinc Metals is arguably the cheapest zinc stock in the world is. But how long will it stay so cheap? The chart says: not much longer! Compared with Arizona Mining, the company has one Potential of over 1000% (Read the comparison below)
So it would make perfect sense for Tongling to use the opportunity to take over the entire company cheaply by means of a takeover, wouldn't it?
A dangerous rod stands for Tongling in the window! Tongling cannot be sure about a stress-free takeover, because the billion-dollar company Teck has set up a joint venture with the billion-dollar company Korea Zinc in a part of the Canada Zinc Metals area that is not part of the core exploration area. These two billion corporations are now working FOR this comparatively tiny explorer called Canada Zinc Metals and have to invest a crispy 8.5 million to get 75% ownership.
The area discussed lies exactly between two huge zinc deposits, one of which is Canada Zinc and the other is owned by the Teck / Korea Zinc Joint Venture. What will happen if the ongoing drilling also verifies a deposit?
A BIDDING WAR BETWEEN TONGLING AND KOREA ZINC AND TECK COULD BE THE CONSEQUENCE, MUCH TO THE BENEFIT OF THE SHAREHOLDERS! HAS CEO VARSHNEY SMELLED THE ROAST AND THEREFORE BUYED THE COMPANY'S SHARES FOR WEEKS?
Why zinc? The big players are extremely bullish!
The zinc supply is currently slipping into a massive deficit. Mine closings are creating great upside pressure on the price of this metal. The zinc price is currently trading at its multi-year high, while inventories have continued to shrink since 2012 and reached a long-term record low in June.
Zinc consumption is increasing and supplies are becoming increasingly scarce due to numerous mine closings!
Goldman Sachs - We are bullish on one single metal: zinc
Morgan Stanley - We're zinc cops
- China closes 26 mines
- Lisheen zinc mine was closed in 2015
- Cenury zinc mine closed in 2015
- Nystar is considering reducing zinc production by 400,000 tons
- China increases zinc imports by 48% in 2016
All of this means a huge cut in zinc production. In fact, zinc has had the best performance among metals to date in 2016 - even ahead of silver.
We've all seen it this year with gold and silver. The shares perform far better than, for example, a certificate on the metal itself.
BUT THERE ARE ONLY A FEW SHARES IN THE MARKET THAT ARE PURE ZINC PLAYERS! THE NUMBER IS REDUCED AGAIN IF YOU ARE LOOKING FOR VALUABLE INVESTMENTS! I JUST KNOW A HAND FULL!
The best option, in my opinion, is Canada Zinc Metals.
+++ INSIDER PURCHASES +++ INSIDER PURCHASES +++ INSIDER PURCHASES +++
Recently the Toronto Home Exchange approved the application for a share buyback program. On the basis of this program, up to 7.6 million shares are to be bought back on the stock exchange and then deleted. WHAT WILL THE COURSE DO?
THE BEST SIGN OF DEFERRED UNDERVALUATION IS A COMPANY'S SHARE BUYBACK PROGRAM! THIS AFFAIR IS POTENTIFIED IF INSIDERS BUY UP SHARES IN THEIR OWN COMPANY.
This is what is happening at Canada Zinc Metals right now. Although the Varshney family owns millions of stocks in the company, CEO Peeyush Varshney only started buying up shares in the company a few days ago. You can see the most recent purchases here:
What does that mean?
Companies with enough capital in the bank start a buyback program if they think they are extremely undervalued. A share buyback program ALWAYS stabilizes the price or, as in the case of Canada Zinc Metals, DRIVES the price.
Now Canada Zinc Metals joins this select group and the reason is more than just obvious - ABSTRUSE UNDERVALUATION! Otherwise would the CEO also personally buy CZX shares?
Here's a comparison that shows just how absurd Canada Zinc's undervaluation is:
Arizona mining - Also a zinc exploration company with the home exchange Toronto has the following to show:
Market value: $ 600 million (CDN) (Royal Bank of Canada target price: $ 700 million)
Deposit: 40 million tons grading 4.5% zinc, 4.5% lead, 67g / t silver, 0.14% copper, verified through 25 meters with an average drilling spacing of 225 meters
Form of deposit: Various "lenses"
Dismantling: Selective underground mining
Value per ton of rock: 230 USD
Charges: Annual taxes for the claims + NSR fees between 1-2%
Exploration right: 5,600 hectares
Canada Zinc Metals - Toronto Home Exchange
Market value: $ 63 million (CDN)
Deposit: 28 million tons grading 8.2% zinc, 1.6% lead, 14g / t silver, verified through 104 drill holes averaged 100 meters apart.
Form of deposit: Continuous mineralization
Dismantling: Underground mass mining
Value per ton of rock: 220 USD
Charges: None until 2025, no NSR
Exploration right: 80,000 hectares
Sorry, but a blind person MUST see the undervaluation, especially if you also know that the Canada Zinc deposit is listed in the higher-quality "indicated" category and the Arizona Mining deposit is only in the basic "inferred" category "(derived) is.
The management has also recognized this and therefore initiated the share buyback program and the CEO has also been actively buying shares in the market for weeks.
China imagination - adopting imagination
I already mentioned at the beginning that dozens of mines had to be closed in China. That is probably why another billionaire company, Tongling Nonferrous Metals (Shenzen SE: 000630), has constantly invested in Canada Zinc Metals on a large scale. Around 45 million of the 150 million shares issued are in safe hands. Tongling even considered the investment so important that it always invested well above the market price (up to + 30% buyer's premium).
DO YOU ALREADY AVANCES FROM TONGLING TO CANADA ZINC METALS? WHY ELSE DOES THE CEO ACTIVELY BUY SHARES?
The Varshneys - the top management
CEO Peeyush Varshney and Director Praveen Varshney direct the fortunes of Canada Zinc Metals. Both brothers were also founders of Mountain Province Diamonds (TSX: MPV, NASDAQ: MDM, WKN: 910555) and have currently not held director posts. The company is worth $ 1.1 billion and diamond mining will begin shortly! A real top story with top jewelery retailer DeBeers as a major shareholder.
Short term and medium term and long term
Short term I expect a huge surge in price for the stock. +50% wouldn't surprise me TODAY as investors will CERTAINLY speculate on takeover.
Medium term I expect to achieve the 3.00 CAD target price (900%).
Long term there are no upper limits, because in 2016 a huge supply / demand gap opens up for zinc, which should drive the zinc price from one high to the next for years.
From the beginning of 2016 to date, the price of zinc has increased by around 60%, beating pretty much everything that can be traded in the raw material sector. In June 2016, the stocks of the London Metal Exchange (LME) reached a multi-year low of 360,000 tons. For comparison, in 2013 these were still over 1,200,000 tons.
This condition will be fueled by numerous other mine closings (exploited) in the coming months and years.
Gold, silver, lithium, everything is in the shine of the supposed "gray duckling?" Zinc fade. It is therefore imperative to have a good stock of zinc in the portfolio and I mean that I am with Canada Zinc Metals WKN: A0RAQJ the really best I chose that is undervalued and at the same time still viable from the deposit. With the expected escalation of the zinc price, Canada Zinc Metals is too one of the hottest takeover candidates - the joint venture on a "side project" with Teck, the non-ferrous metal giant from Canada, illustrates the proximity to the majors. In the end, it doesn't matter whether it comes to a takeover by Teck / Korea Zinc, or Tongling Nonferrous strikes or whether another player takes the stage - yes, I could imagine a bidding war, because Canada Zinc Metals' deposit is one of the largest verified worldwide!
According to this news we should see at least + 50%. In the medium term at least 900%, if one uses the comparison Arizona Mining - Canada Zinc Metals for the evaluation. In the long run, it could be the stock of your life.
I THINK YOU CANNOT LOSE WITH THIS SHARE!
PS: If you liked this report, I would be delighted if you subscribe to my free newsletter, which has been published daily since 2006:
Disclaimer + conflict of interest
According to Section 34b of the Securities Trading Act (Germany) and Section 48f (5) of the Stock Exchange Act (Austria), we would like to point out that employees, authors, clients and related parties hold the above-mentioned shares and that there is therefore a conflict of interest. Attention: This stock market letter only represents the personal opinion of Helmut Pollinger and is in no way to be equated with a financial analysis. Before making any investments, professional advice from your bank is essential. Another conflict of interest arises because the companies described are, were, or will be, customers of bullVestor Medien GmbH, either directly or indirectly. The article is subject to the intellectual property of the author or the publisher. Passing on or publication to third parties (even in extracts) is not permitted without our consent. The bullVestor Börsenbrief, the free blueEdition and the chargeable blackEdition, are for informational purposes only. All information and data in the publications come from sources that bullVestor considers to be reliable and trustworthy at the time of preparation. Nevertheless, we do not assume any liability for the correctness, accuracy, completeness and appropriateness of the facts presented. The statements and opinions of bullVestor do not constitute a recommendation to buy or sell a security. Price target calculations are made in the "best case scenario". Statements from us such as "BUY", STRONG BUY "or the like merely represent our opinion. An investment in securities, in particular with low liquidity and low market capitalization, is speculative and represents a very high risk. Due to the speculative nature of the companies shown, It is quite possible that capital reductions up to a total loss can occur with investments. bullVestor is not responsible for the consequences, especially for losses, which result from the use or the failure to use from the views and conclusions contained in the publications. bullVestor does not guarantee that the expected profit or the stated price targets will be achieved. The publisher and employees of bullVestor are not professional investment advisors. Previous price gains cannot and must not be used to infer future price gains. Use of the medium is only intended for private personal use. Professional use is subject to payment. Our online service (blueEdition, blackEdition) is in accordance with applicable Austrian law. Place of jurisdiction: St. Pölten.
bullVestor Medien GmbH
4300 St. Valentine
Tel: +43 7435 54077-0
Commercial register number: FN275279y
Managing director and 100% owner: Helmut Pollinger
Place of jurisdiction: St. Pölten
contact [at] bullvestor.at
+++ END ADVERTISING / ADVERTISEMENT +++
Liability notice / disclaimer
Unister GmbH and its Börsennews.de portal are not responsible for the texts and images marked as advertising / adverts and do not adopt the content of the advertising / advert as their own.
The named publisher of the advertisement / advertisement is solely responsible for the content of the advertisement / advertisement. Unister GmbH and its Börsennews.de portal do not check the content of the content marked as advertising / advertisement. Unister GmbH and its Börsennews.de portal do not accept any liability for the correctness of the information provided.
The advertisement / advertisement is not an invitation to buy or sell the securities on the part of Unister GmbH. The acquisition of securities harbors risks that can lead to a total loss of the capital employed and - depending on the type of investment - even to obligations going beyond this, e.g. obligations to make additional contributions.
We assume no liability for any financial damage that could be caused by the recommendations made in this newsletter. Unister GmbH and your portal Börsennews.de and / or affiliated companies, executives and / or employees currently or in the future hold long or short positions in the securities and / or options, futures and other derivatives that are based on these securities or other investments related to media published by Unister and Börsennews.de.
- What makes Saenger T M Krishna famous
- What is the most practical emotion
- Is canned food healthy
- How do I earn while I study
- What do Palestinian textbooks say about Israelis
- Are liver cancer and liver cirrhosis linked
- What is the biography of Narendra Modi
- What is the OSHA PEL for benzene
- Should I move to Oakland or Seattle?
- What is propofol
- What are some good but inexpensive subwoofers
- Small businesses need strategic planning
- Who is Ruud Gullit
- Girls who pale their lips Why
- What is the 11B National Guard
- Are Quora sequences correlated with IQ?
- How to calculate sqrt 2 manually
- Sprint is a 4G network
- What happens when metals react with oxygen
- What does Mockito spy do
- What is a mobile GPU
- How western are the Netherlands
- Why does the US keep mocking NK
- How do I fool a hacker
- How often is the FIBA World Championship
- YouTube revenue is falling
- Ride an electric train in Pakistan
- Do you hate yourself sometimes
- What is the ad rank in Google AdWords
- What is wood decay
- How to say salsa in Spanish
- What's the best picture you took by mistake
- Is there something called the Original Mahabharata
- Why shouldn't someone smoke weed