GREY:ADAIF - Post by User
Comment by
retep6on Nov 07, 2007 2:49pm
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Post# 13769945
RE: Rainbow
RE: RainbowI don't think Campine is ignoring the possibility of reserves increasing. I think most of us understand that the zinc reserves are extremely likely (almost certain, in fact) to be expanded. The real problem is the combination of a large decrease in the price of zinc from a year ago, coupled with a huge change in the exchange rate. To put it into perpespective, one year ago zinc was around 2 dollars US/lb, which was about $2.30 Canadian/lb. Today, on the other hand, we are looking at $1.25 US/lb which translates to about $1.17 Canadian/lb, which is roughly half what it was a year ago.
I don't say this to bash the stock, just to make the comparison to a year ago. Back then, I was expecting the stock to have reached $2 by now, but with the fall in zinc and the rise of the $C, I now see $1.50 as being a fair target over the next 12 months. And from where we are today, that represents a 50% gain, more than enough to keep me happy.
Oh, and one other thing ..... If the company never spent another cent on promotion, that would suit me just fine.
Cheers all.