Gann
Your comment:
"Even if Zinc does rebound and break $2.07 ZFX should be no higer then it is now, so in theory you can really limit your risk here."
Obviously if zinc hits it's all time high and ZFX is overvalued NOW then we should sell. But of course you should provide some reasoning based on anticipated zinc prices, dividends, takeover potential, new projects (Dugald River), PE ratios, comparison to other resources companies etc.
Here's my view:
Zinc price 2007 - along with nickel excellent
Dividends - Much larger than other resource companies
Takeover potential - Excellent and much improved after today. Exploration success would help.
New projects - Indications are Dugald River will be a goer. Several JV's in progress.
PE - Forward PE of say 5?
If zfx is a sell heaven help the resource market as a whole.
ZFX
zinifex limited
