Stockchase Opinions

David Driscoll Canadian Zinc Corp CZN-T DON'T BUY Oct 15, 2004

These companies tend to grow about 15/20% a year. A little rich right now.
$0.770

Stock price when the opinion was issued

metal mines
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DON'T BUY
Received the permits for their mining operations in the North West Territories. A lot of volume on this news. Still have to prove the silver deposits. Have had no sales in the last five years.
DON'T BUY
Owns a deposit in the northern territories. They have about a 3.6 million tonne ore body of which only a small portion is provable and probable. Deposit is too small for the amount of capitalization that is required.
DON'T BUY
A trendline running up from December was broken in May. That indicates a bear. A new low in July with a higher one in September indicates a rally. If it makes a new low, don't stay in the stock. However, the stock did not keep up with zinc commodities which indicates other problems.
HOLD

(Market Call Minute.) Has the development mine in the North. At the mercy of zinc prices.

BUY

They have all their permits. But where do they get the financing from? But it is a timely investment. Next year one of the largest zinc deposits in the world is being decommissioned.

COMMENT

His suspicion is that this trades better this year as a consequence of higher zinc prices. He is not attracted to it, because he wants companies that will end up in the lowest cash/cost quartile in the world, and this company won’t be among them. However, a rising tide should float all ships, particularly Canadian ships.