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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