Not super sexy, but metals are useful in a growing electronics industry and has general commodity applications. ZINC might be a good value.
6/5/2015
Horsehead Holding Corp (NASDAQ: ZINC)
Horsehead holding produces zinc and nickel products while also providing ancillary recycling and delivery services related to the industry. These metals are used in batteries, galvanized steel, steel alloys, tires, paint, chemicals, and pharmaceuticals. It's not super sexy, but might be a good value.
Price at write-up $12.45
Target $15
Valuation Ratios
Price/Earnings (TTM) . . . . .Neg
Price/Sales (TTM) . . . . . . . 1.56
Earnings per share . . . . . . . -$0.66
Price/Book (MRQ) . . . . . . .1.44
Price/Cash Flow (TTM) . . .89.96
Held by institutions . . . . . . .96.25%
Short interest . . . . . . . . . . . .14.75%
Dividend . . . . . . . . . . . . . . .NA
MarketCap 795.4M
This is admittedly out of my wheelhouse as it is not a consumer staple or an unabashed tech company. However, with mobile growing and the demand for batteries almost certain to continue to increase it's worth paying attention to a producer of zinc & nickel even if the future seems to be in lithium. Notably the Gigafactory is using Li-ion batteries that will likely become the mainstay of the world battery market unless batteries are otherwise revolutionized.
The price of zinc is up, because several of the world's largest zinc mines have been shut down. Spinning that as a buying opportunity is like saying that because demand has chilled for oil and many drilling operations are suspended is an opportunity to own shares in oil production sounds a little foolish to me. In fact, there is no strong case I can think of for this company. Sure, they're increasing production and expanding but it's into a declining market with no real silver lining.
ZINC seems to be priced at a low that would enable you to pick it up at a fair price, right around $12.
But I don't know where it would go from there? All the way up to $15 while the rest of the market moves independently and possibly more favorably? Sure zinc is a nice alloy metal, but it's industrial application is commodified and ZINC offers no real advantage here. Without batteries and Li exposure this just looks like a general commodity production company to me. This may be one for the radar, but I'll probably just forget about it.
I have to pass on this suggestion, but I did uncover some interesting stocks for due diligence comparison below that I, while haven't researched them, expect are more promising. ZINC is just a fair company at a good price, something I'm not a huge fan of.
Due Diligence - ERS, NSU, HCLP, TC, AA, NEM
Horsehead Holding Corp (NASDAQ: ZINC)
Horsehead holding produces zinc and nickel products while also providing ancillary recycling and delivery services related to the industry. These metals are used in batteries, galvanized steel, steel alloys, tires, paint, chemicals, and pharmaceuticals. It's not super sexy, but might be a good value.
Price at write-up $12.45
Target $15
Valuation Ratios
Price/Earnings (TTM) . . . . .Neg
Price/Sales (TTM) . . . . . . . 1.56
Earnings per share . . . . . . . -$0.66
Price/Book (MRQ) . . . . . . .1.44
Price/Cash Flow (TTM) . . .89.96
Held by institutions . . . . . . .96.25%
Short interest . . . . . . . . . . . .14.75%
Dividend . . . . . . . . . . . . . . .NA
MarketCap 795.4M
This is admittedly out of my wheelhouse as it is not a consumer staple or an unabashed tech company. However, with mobile growing and the demand for batteries almost certain to continue to increase it's worth paying attention to a producer of zinc & nickel even if the future seems to be in lithium. Notably the Gigafactory is using Li-ion batteries that will likely become the mainstay of the world battery market unless batteries are otherwise revolutionized.
The price of zinc is up, because several of the world's largest zinc mines have been shut down. Spinning that as a buying opportunity is like saying that because demand has chilled for oil and many drilling operations are suspended is an opportunity to own shares in oil production sounds a little foolish to me. In fact, there is no strong case I can think of for this company. Sure, they're increasing production and expanding but it's into a declining market with no real silver lining.
ZINC seems to be priced at a low that would enable you to pick it up at a fair price, right around $12.
But I don't know where it would go from there? All the way up to $15 while the rest of the market moves independently and possibly more favorably? Sure zinc is a nice alloy metal, but it's industrial application is commodified and ZINC offers no real advantage here. Without batteries and Li exposure this just looks like a general commodity production company to me. This may be one for the radar, but I'll probably just forget about it.
I have to pass on this suggestion, but I did uncover some interesting stocks for due diligence comparison below that I, while haven't researched them, expect are more promising. ZINC is just a fair company at a good price, something I'm not a huge fan of.
Due Diligence - ERS, NSU, HCLP, TC, AA, NEM