Monday, October 21, 2013

Seeking Alpha: Nyrstar Far From Health

It's not hard to find a base metal mining or smelting company whose stock is down over the last twelve months. In fact, the bigger challenge is finding a winner. So it's not necessarily an unforgivable black mark against Nyrstar (OTC:NYRSY) (NYR.BR) that the shares have been so weak (down 30%) over the past year.

The bigger problem here is that the company has made a series of poor capital allocation decisions and may well find it next to impossible to cut costs to a point where the returns from the business are attractive again. But there's another side to the story, one that may appeal to more trading-inclined investors. This is one of those rare stories where almost every sell-side analyst covering the stock is negative on it (either rating it a Sell/Underperform or a weak hold), and if zinc prices stage a recovery (and/or the company irons out its operational issues), these shares could bounce.

Please continue here:
Nyrstar Far From Health

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