Stockchase Opinions

Sid Mokhtari Trevali Mining Corp TV-T DON'T BUY Feb 04, 2019

It has ties to the zinc market, which has been under severe pressure from tax loss selling. HBM-T would be a better replacement if you want to be here.
$0.365

Stock price when the opinion was issued

Mining
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WAIT
Gold is out of favour. Penny stocks don't respond well to tech analysis. If you believe in the story, it's 30 cents a share, go ahead and do it. Wait and see, if gold were to pop, the small ones would go as well. But he doesn't see any short-term upside.
HOLD
It has really been crushed since the big financing on the stock. Now is probably the time to buy it. They had a lot of operational problems in their mine, but they have turned over the management team yet the stock continues to go down. He started to buy at $0.45. He would hold on. Don't sell.
DON'T BUY
His single most disappointing holding as a zinc miner. They have great assets -- they are the largest non-senior zinc producer. This is a wait and see turnaround opportunity, so he would look for something else.
PAST TOP PICK
(A Top Pick Aug 27/18, Down 73%) Price of zinc dropped, and that changed the dynamic. Trading at 2.5 times cash flow, but no one cares.
DON'T BUY
A zinc play that is has short cycles and there is a glut in the market today. A lot of supply, but nowhere for it to go.
DON'T BUY
Had a sharp downturn through 2018 then went sideways in 2019, so you're speculating now. It'll be very tough to return to previous high levels.
DON'T BUY
They missed 7 out of 8 quarters. Their balance sheet is good and cash flow is good. Their debt is not too high. It might have been a takeover target except for the Glen Core piece.
DON'T BUY
A company who specializes in zinc mining. Earnings estimates for 2020 expect losses and break even in 2021. You might be better off taking a tax loss and look for better opportunities.
DON'T BUY
He used to own zinc plays but the peak is gone. It is not a falling knife that he wants to catch.
BUY
The biggest independent zinc producer has had its ups and downs. The new CEO has to navigate 2020, which was tough. Zinc prices have jumped to US$1.25/lb. TV's cost structure is based on $1.10-1.15. TV trades at a deep discount. Zinc doesn't capture the imagination like copper or nickel, though. Zinc prices have benefited from the rebounded in car production and other industrial activity. He has owned this in the past. A good company for pure zinc exposure.