3SOF

Wow, outstanding results on EZM 

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

These results were much better than I was anticipating ... of course, the stock opened with a gap up and needed to close that gap, but there's no doubt EZM will be an outstanding performer going forward.

Is there calculation error for 2006 performance?

It showed < 1% yesterday but now is > 7% with today's gain/loss only 0.34%.

Based on my records, it is less than 1% so far.

Quote from: David Randolph on March 03, 2006, 09:10:14 AM
Wow, outstanding results on EZM 

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

I think there is an error:

They earned $0.05 for the quarter and $0.17 for the year.

I am curious why the stock did not jump after the good news?

Quote from: shawFund on March 03, 2006, 10:28:47 AM
Is there calculation error for 2006 performance?

It showed < 1% yesterday but now is > 7% with today's gain/loss only 0.34%.

Based on my records, it is less than 1% so far.

2006 performance is +1.94% on Stocks on Fire, -0.07% on Long Term on Fire and +13.69% on the Pennies on Fire Portfolio right at this moment.

Quote from: shawFund on March 03, 2006, 10:36:52 AM

Quote from: David Randolph on March 03, 2006, 09:10:14 AM
Wow, outstanding results on EZM

$0.17 a share for the 4th quarter mean $0.68 annualized, so the earnings multiple is 2.34 !!!!

I think there is an error:

They earned $0.05 for the quarter and $0.17 for the year.

I am curious why the stock did not jump after the good news?

You're right, I was in a hurry so didn't read the numbers correctly. They earned $0.05 on the 4th quarter, so $0.20 annualized. Then, the earnings multiple is 8.

Not as attractive as I initially saw, but still very attractive (you really don't want to buy stocks too cheap).

Thanks for the correction shawFund 

Thanks.

The recent stock selection fits your style. Follow the trend.

Buy high and go higher.

I didn't knew EZM had the 2nd largest copper mine in Europe 

«"We are both pleased and proud of our first full year of work as a new team in Portugal and in EuroZinc," said Joao Carrelo, Managing Director of Somincor, EuroZinc's wholly owned subsidiary that owns the Neves-Corvo mine. Mr. Carrelo added, "This was our first full year as a mine operating entity in Portugal, managing Europe's second largest copper mine. The management and employees of Neves-Corvo achieved a 14 percent improvement, year over year, in tonnes mined and an 8 percent improvement in tonnes milled, and did so with no additional manpower, equipment or change in the working schedules."»

Other highlights on the 4th quarter results:

«Highlights for 2005 and Fourth Quarter

- Achieved record revenue of $314.9 million on sales of 203.7 million pounds of copper for the year and $97.5 million on sales of 48.1 million pounds for the fourth quarter;

- Achieved record net earnings of $88.3 million or US$0.17 (Cdn$0.20) per share for the year and $27.8 million or US$0.05 (Cdn$0.06) for the fourth quarter;

- Generated cash flow from operations, before working capital changes, of $131.4 million or US$0.25 (Cdn$0.30) per share for the year and US$0.09 (Cdn$0.10) for the fourth quarter;

- Initiated an aggressive $10 million exploration program in Portugal;

- Repaid $86.3 million of debt in 2005;

- Strengthened the balance sheet by reducing the net debt to equity ratio to 7% at the 2005 year end from 73% at the beginning of the year;

- Purchased the balance of the vendors' price participation rights in 2005 and repaid the related loan in eight months;

- Listed on the American Stock Exchange.»

Basically, the company almost already paid all its initial investment, in about 1 year of operations. I told you the Portuguese sell their assets cheap 

Going forward probably net income will rise substantially, since most debt was already paid. Also, on the revenue side, the company will soon add zinc exploration.

I'll continue holding EZM ...

There were some good news on EZM yesterday:

EuroZinc Announces New Mineral Resource and Reserve for Neves-Corvo

It looks like the stock found a bottom, since it made an hammer, which is a bullish candlestick pattern. Volume also increased.

I'm starting to know why Michael says the expectations for the copper market are for it to go down, since even EZM uses a much lower price than the current price for its internal and external estimates:

«Copper reserves are calculated using a 2% cut-off based on a long term copper price of US$1.04/lb and dilution of 10%.»

They're conservative, I like that. I still believe these copper/zinc mining companies have the potential to surprise on the upside, given their low valuation.

I'll continue holding EZM.

I believe that EZM may have hedged alot of their copper at a lower price.  I don't know how that calculates into their  profit outlook of $1.04 lb.

EZM is trading the range $1.20/$1.60 for the last 2 months.

After breaking up the upside, the stock had another sell-off, dropping again to the $1.36 level, making this value to be the short term support.

As a precaution measure, we'll setup a stop level to this trade @ $1.35, since we believe this price level could turn our short term perspective on EZM if breached down.

Best regards,

EZM had a nice run last Friday, due to this news (published after the bell on Thursday):
EuroZinc Added to S&P/TSX Composite Index

Today EZM opened with a gap up to new highs, and start tumbling the rest of the session over high volume. We didn't particularly enjoyed this session, but the technical pattern is still good.

EZM is been performing consecutive higher short term highs, and higher short term lows, so our trading plan will be updated upon this demand; we'll give EZM room for a correction, but only assuming that this will going to be a higher low. The last relative low was $1.36, taking in consideration the new ascending support; we'll be moving our stop level to $1.45, and Hold EZM.

Another red candle after breaking new highs... EZM is been performing this behaviour during the last months, but always with higher highs and higher lows, giving an interesting bullish mood to this stock.

This technical pattern is working, and we'll be just adjusting our trading plan to it, upgrading our stop a bit higher, since it's connected to an ascending support line:
- Hold EZM with a stop @ $1.52

Hi Ramsburg.

Do you think its time to increase the stop loss on this one to protect the gains made ?

Quote from: Gillham on April 11, 2006, 07:07:20 PM
Hi Ramsburg.

Do you think its time to increase the stop loss on this one to protect the gains made ?

Hi Gillham, yes we're updating our stop level today.

EZM is been performing very well, trading on a new stage now. We decided to change our stop level from the previous support to the new one. It's just a security measure to protect our profits, the new stop may seem a bit tight, but we must do that even if we think EZM is willing to continue this bull trend.

So the new plan is:
- Hold EZM with a stop @ $1.90

EZM: Canaccord Cuts to Hold from Buy
Tuesday , April 18, 2006 08:32 ET
Issuer: Eurozinc Mining Corporation (AMEX: EZM)
Analyst Firm:  Canaccord Capital
Ratings Action: DOWNGRADE
Current Rating: Hold (from Buy)

but also


EZM: New 52-Wk High @ $2.360 up 3.96%[/color]
Tuesday , April 18, 2006 09:57 ET

This is the 1st 52 WEEK HIGH alert for EZM in the past 7 calendar days.

The share price for Eurozinc Mining Corporation (AMEX: EZM) reached a new 52-week high today, trading at $2.360, up $0.090 (3.96%) from its previous close of $2.270.

The Company's previous 52-week high of $2.320 was set yesterday on April 17, 2006.

Four months ago, the Company's shares closed at $1.100. The price has climbed more than 114 percent since then.

At the time of this alert, the stock had traded 127,100 shares via 8 trades, 94.09% below it's 20day average of 2,150,025 shares.

This new 52-week high currently puts the stock:

25.37% above its 20day Moving Average of $1.883
45.18% above its 50day Moving Average of $1.626
58.57% above its 100day Moving Average of $1.488

are you indicating it is time to sell or keep holding ?