When will management wake up?Zinc has officially broken the key support of $1 and is currently trading at $.98. Foolish management did not even consider that zinc might be in a bear market, and maybe it was time to enter survival mode in order to wait it out.
Management has made a number of poor decisions.
1. Stock buybacks - this was a total waste of cash. It accomplished nothing, and they are certainly going to wish they had that cash if zinc stays below $1 for an extended period.
2. Close Caribou - Caribou is a company killer when zinc prices are depressed. Leaving this money pit open is a big mistake. They should milk it for every pound of zinc they can and then close it forever.
3. Reverse split - Everyone knows they are going to need a reverse split at some point due to the ridiculous share count. Leaving this uncertainty is not helping the stock. It also invites penny stock flippers rather than real investors. They should just get the reverse split over with.
4. Forward selling - Management should have forward sold some zinc when they could have done it at a profit. Less than a year ago, zinc was over $1.30. That would have been a good time to lock in a profitable price for a reasonable percentage of the production.