Robert McWhirter
Breakwater Resources
BWR-T
WAIT
Mar 15, 2011
Solid performer, but earnings are expected to go down from 1.28 to 1.01. Appears to be cheap. 5.5 times PE and 18% ROE. Good opportunities for zinc. Overall, steel will be quite good for the next 12 months. Hopefully BWR will bottom out in the next 2 months.
3 Year chart doesn’t show anything untoward. RSI is a little bit high but STOCH (Stochastics) is pretty slack. See any reason why it would break down from here.
Good leverage to zinc prices, which have been doing quite well. Wouldn't be surprised to see a pullback in global commodity prices. That might hurt them in the short term but if commodity prices are sustainable there is a lot of upside.
Play on zinc. Has put in a base since ’09 and there was break out recently. A good stock and performed extremely well and expects it to continue. Nov 19 into January, metals and mines do well. Looking for it to pull up from here.
Trading a little over 6X current earnings. Chart shows a breakout in the last little while. Close to the 50 day moving average of around $5, which is were it has support. Use a stop-loss near $5.
Primarily a zinc producer. Zinc is used in galvanizing steel to prevent it rusting. Also duct work. Very liked to auto and construction industry. Dependent on China. There is a lot of zinc mines in the world but many people think it will be in a deficit position in 2013