Noranda Income Fund Unit NNDIF

RE:Will this company ever bounce back?

[Finalsay]

I think this is the sentiment of most medium to long-term shareholders of Noranda right now. The 52-week high was $2.87 back in February, and Noranda has has not seen much recovery considering the absolute destruction of its market cap. Still sitting down ~58% from $2.87 high with prices trading right now at $1.20. Your question cannot of course be answered with any certainty, but capitulating at these levels is just difficult swallow in my opinion, especially now considering most of the recovery has been priced into markets. If you think you can reallocate your funds more favourably than you should of course do so. But right now I see Noranda trading not far off what feels like its floor price, skewing future returns to the positive side. This is still a profitable business, but it might take some time or some sort of catalyst to see any meaningful appreciation in prices. There has been a significant increase in LME zinc prices from the lows at the end of March/early April and they are currently hovering close to prices seen last fall. Considering Noranda hedges its zinc exposure, its difficult to forecast how much it might benefit from this price swing, especially considering the volatility of zinc prices. I have been contemplating for awhile whether or not to reduce some of my NIF holdings, but I have resisted this urge (to my own detriment as many of my other holdings I moved funds into have appreciatede significantly). The underlying fundamentals, coupled with low downside risk, Noranda feels like a relatively safe pick for the current environment, but also a pick with the potential to see some outsized returns in the medium term. LONG NIF!